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Morgan Stanley to pay $3.2bn to end mortgage probes

Bank admits employees received information that certain loans being packaged into bonds didn’t comply with underwriting guidelines

Morgan Stanley to pay $3.2bn to end mortgage probes
Photo: iStockPhoto

Morgan Stanley will pay $3.2 billion to complete agreements with the US Justice Department and several states to resolve civil charges that it misled investors about the quality of mortgage bonds it sold in the run-up to the 2008 financial crisis.

The agreement, which had been expected, is the latest as federal and state officials work to finish their investigations into banks' contributions to the crisis.

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