Thursday, August 28th16.7°C
22568
22871

Morgan Stanley in preliminary deal to pay $275 million to settle mortgage bond probe with SEC

NEW YORK, N.Y. - Morgan Stanley said it has reached a preliminary agreement with the Securities and Exchange Commission to settle an investigation into the investment bank's subprime mortgage business.

Morgan Stanley agreed to pay $275 million in fines to settle the investigation, according to a regulatory filing made late Tuesday. The SEC's commissioners have not agreed to the settlement yet, and the bank said it had no assurances that the deal would be approved.

The bank reached the preliminary agreement on Jan. 30, it said, and would not admit or deny wrongdoing as part of the deal.

The SEC has been investigating Morgan Stanley, like many other Wall St. firms, for their practices leading up to the subprime mortgage crisis. The products in question, in Morgan Stanley's case, are residential mortgage bond products that were sponsored and underwritten by Morgan Stanley in 2007.

The $275 million would be a combination of giving up profits that were earned on the sale of the bonds as well as fines and penalties, the bank said in the filing.

Like many other banks, Morgan Stanley's legal expenses ballooned last year because of settlements related to the financial crisis. Morgan Stanley paid $1.95 billion in litigation expenses in 2013, more than triple what it paid in 2012. In 2011 it had $151 million in legal expenses.

In the regulatory filing, the company said its future litigation expenses will be "elevated" for the foreseeable future as it continues to reach settlements with state and federal agencies as well as private investors.

Morgan Stanley said the $275 million payment would be charged to the firm's 2013 results, and would not impact the company's results this year.

An SEC spokesman declined to comment.

___

AP Business Writer Marcy Gordon contributed to this report from Washington, D.C.

The Canadian Press


Read more Business News

22719


Recent Trending




Today's Market
S&P TSX15558.17-44.48
S&P CDNX1022.373.03
DJIA17079.57-42.44
Nasdaq4557.695-11.927
S&P 5001996.74-3.38
CDN Dollar0.9210+0.0002
Gold1281.70-2.1001
Oil94.66+0.11
Lumber349.40+2.40
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.195-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.240.00
Metalex Ventures0.075-0.005
Russel Metals36.39-0.21
Copper Mountain Mining2.91-0.05
Colorado Resources0.180.00
ReliaBrand Inc0.099-0.016
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.25+0.01

 



22831

FEATURED Property
2036621#101 - 162 Dauphin Place
5 bedrooms 2 baths
$324,900
more details
image2
Click here to feature your property
Please wait... loading


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...


What is a journey without a destination?

Photo: ContributedI would call it a joy ride... You see a planned project or business has a destination. It may be an ongoing revenue stream, it may be a business value or an exit strategy. If you don...


Joint accounts: what you need to know!

Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...

_








Member of BC Press Council


22707