Morgan Stanley to pay $63M in mortgage bond settlement

Morgan Stanley has agreed to pay nearly $63 million to resolve claims over the sale of toxic mortgage-backed securities to three banks that later failed, the Federal Deposit Insurance Corp announced Tuesday.

Lawsuits had claimed Morgan Stanley and other defendants misrepresented mortgage-back securities in offering documents.

A year ago, Morgan Stanley was part of a $2.6 billion settlement with the U.S. Justice Department over mortgage bonds.

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