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Morgan Stanley Agrees To $2.6 Billion Mortgage-Backed Securities Settlement

Morgan Stanley has agreed to pay $2.6 billion to settle claims made by the Justice Department regarding the sale of mortgage-backed securities during the financial crisis of 2008.

The company made the announcement in a filing with the Securities and Exchange Commission on Wednesday.

This settlement is the latest in a string tied to the mortgage practices that led to housing bubble, which was mostly responsible for the great recession. Back in December, Bloomberg explained:

"In August, Bank of America Corp. agreed to pay $16.7 billion for misrepresenting the quality of bonds backed by home loans. Citigroup Inc. reached a $7 billion deal in July, while JPMorgan Chase & Co. struck a $13 billion accord last year.

"Morgan Stanley has said for years that it faces government inquiries into how it handled home loans and related investment products. In a November regulatory filing, the firm said that some cases had reached 'advanced stages.' The investigations focus in part on the firm's due diligence on loans it bought and disclosures to investors."

Copyright 2021 NPR. To see more, visit https://www.npr.org.

Eyder Peralta is NPR's East Africa correspondent based in Nairobi, Kenya.

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SOMOS CONNECTICUT es una iniciativa de Connecticut Public, la emisora local de NPR y PBS del estado, que busca elevar nuestras historias latinas y expandir programación que alza y informa nuestras comunidades latinas locales. Visita CTPublic.org/latino para más reportajes y recursos. Para noticias, suscríbase a nuestro boletín informativo en ctpublic.org/newsletters.

The independent journalism and non-commercial programming you rely on every day is in danger.

If you’re reading this, you believe in trusted journalism and in learning without paywalls. You value access to educational content kids love and enriching cultural programming.

Now all of that is at risk.

Federal funding for public media is under threat and if it goes, the impact to our communities will be devastating.

Together, we can defend it. It’s time to protect what matters.

Your voice has protected public media before. Now, it’s needed again. Learn how you can protect the news and programming you depend on.