The money will be used to compensate those affected by the bank’s shares and avoid foreclosures.
11.feb.2016 | 20:20
NEW YORK. The bank Morgan Stanley closed a deal with federal authorities and several US states and will pay 3,200 million dollars to end civil lawsuits for their role in the crisis of subprime mortgages.
The Department of Justice announced an agreement with the New York bank had several ongoing cases yesterday for having deceived investors about the quality of mortgage bonds led to the financial crisis of 2008.
the agreement calls Morgan Stanley to provide a “significant relief” to those affected, including reductions in loans to help residents to avoid foreclosure and subsidies to promote the construction of affordable housing.
the negotiations were led by a working group set up in 2012 to investigate irregularities in the market for mortgage-backed securities before the financial crisis, co-chaired by New York Attorney General Eric Schneiderman.
“This is another victory in our efforts to help New Yorkers rebuild following the financial devastation caused by major banks of our country “, said yesterday the prosecutor in announcing the deal.
During the course of investigations, Morgan Stanley came to recognize that increased levels of acceptable risk for securitized loans on their funds, he explained office Schneiderman said in a statement.
Among the evidence gathered to document these deceptive practices are numerous emails, including one sent in May 2006 by an employee who said that “we are working off the radar and no we want to document this kind of thing. “
of the 3,200 million dollars to be paid by the bank, about 550 million will go to New York, of which 400 million will go to measures for” relief ” consumers to avoid foreclosure.
the Department of Justice has closed similar agreements by the crisis of subprime mortgages with other major banks like JPMorgan, Citigroup and Bank of America, have agreed to pay 35,000 million dollars.
After meeting the agreement with the authorities, shares of Morgan Stanley fell sharply one 5.51% in New York stock Exchange (NYSE), which have plunged more than 32% since it started the year. – EFE
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Black Thursday in bags …
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