In news from Wall Street, banking giant Morgan Stanley will pay $3.2 billion to settle a slew of federal and state charges that the bank lied to investors about the value of residential mortgage-backed securities, which played a role in triggering the global financial recession that began in late 2007. This is the latest in a series of financial settlements by banking giants charged with lying about the value of the toxic mortgage-backed securities. President Obama set up a working group in 2012 to investigate wrongdoings in the mortgage market in the lead-up to the financial crisis. So far, this working group has led to Bank of America paying out $16.6 billion, JPMorgan paying out $13 billion and Citigroup paying out $7 billion in settlements, in addition to Morgan Stanley’s settlement announced Thursday. The investigations have not led to criminal charges or jail time for any banking executives involved.
Morgan Stanley to Pay $3.2 Billion to Settle Allegation of Fraud
HeadlineFeb 12, 2016