Morgan Stanley Reaches $1.25 Billion Settlement of FHFA Suit
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Morgan Stanley agreed to pay $1.25 billion to settle a U.S. regulator’s claims the investment bank sold faulty mortgage-backed securities to Fannie Mae and Freddie Mac that added to their losses in the financial crisis.
Morgan Stanley took a $150 million charge, reducing fourth-quarter and full-year 2013 earnings by 5 cents a share, the New York-based bank said today in a regulatory filing. That would bring last year’s earnings per share to $1.36.