WASHINGTON: US banking giant Morgan Stanley said it would pay $275m to settle a US Securities and Exchange Commission probe of mortgage-backed securities deals.
In a filing, Morgan Stanley said it had reached a preliminary agreement with the SEC in late January to resolve the investigation into the bank’s subprime mortgage-backed securities transactions in 2007.
Earlier in the month Morgan Stanley reported it would pay $1.25bn to the US Federal Housing Finance Agency to settle charges that it misled investors on the sale of mortgage-backed securities ahead of the housing bust. AFP
