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4/25/2019, 8:50 PM (Source: TeleTrader)
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Morgan Stanley to pay $150M to settle mortgage case

Morgan Stanley agreed to pay $150 million to settle a case in California involving the bank's alleged misrepresentation of mortgage-backed securities in the early 2000s but denied the accusations in the settlement agreement, the state's Attorney General Xavier Becerra said on Thursday.

The lender was accused of concealing risks of the mortgage-backed securities sold to the California Public Employees’ Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS). Under the settlement, CalPERS will receive $122 million, CalSTRS will get $8 million and the remainder of the sum will be paid to Becerra's office.

Breaking the News / NP