According to a June 25, 2010 Wall Street Journal article, brokerage giant Morgan Stanley agreed to pay $102 Million to end a probe by Massachusetts Attorney General into the firm’s role in the Subprime mortgage meltdown. Morgan Stanley neither admits or denies any wrong doing as part of the deal.
The case centered around accusations by Attorney General Martha Coakley that Morgan Stanley provided billions of dollars to subprime lender New Century Financial Corp and then continued to do business with the lender even though some of its loans allegedly violated both Morgan Stanley lending guidelines and the State of Massachusetts lending laws.
Morgan Stanley is but one of many banks and brokerages that helped create the housing bubble and subsequent crash that led to billions of dollars of investors losses through investment in subprime mortgage pools and tranches.
The attorneys at Colling Gilbert Wright & Carter are currently investigating and litigating subprime related negligence and fraud arbitration claims. Please contact our offices if you believe you have losses from a subprime related investment. Thank you.