Morgan Stanley discloses $2.6B tentative settlement

Morgan Stanley said Wednesday it has reached a tentative $2.6 billion settlement of civil allegations federal authorities planned to file against the investment bank over mortgage securities.

The federal government has investigated allegations that the bank misled investors about the financial quality of mortgage bonds that soured during the nation’s financial crisis, according to USA Today.

The settlement would be paid to the U.S. Department of Justice and the U.S. attorney’s office for California’s northern district.

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