4 Financial Stock Stories for Labor Day Weekend Perusal
Morgan Stanley (NYSE:MS): Current price $25.77
The Wall Street bank that owns of the biggest brokerage on the planet has been sued by the National Credit Union Administration over the sale of $566 million in residential mortgage-backed securities to two credit unions which later failed. An August 16 filing in federal court in Kansas City indicated that Morgan Stanley and three of its divisions made misleading statements regarding the securities in offering documents.
The agency announced the lawsuit Friday, saying that it waited until all defendants had been served, elaborating that the originators of the securities “systematically abandoned the stated underwriting guidelines in the offering documents. The securities were significantly riskier than represented.”
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