Financial Services

Morgan Stanley to pay $150 mln to settle California mortgage securities charges

April 25 (Reuters) – Morgan Stanley will pay $150 million to settle charges it concealed the risk of mortgage-backed securities that were sold to two large California pension funds, the state’s attorney general Xavier Becerra announced on Thursday.

The California Public Employees’ Retirement System (CalPERS) will receive $122 million from the settlement, while the California State Teachers Retirement System (CalSTRS) will receive $8 million. The remainder will go to Becerra’s office.

Reporting by Jonathan Stempel in New York
Editing by Marguerita Choy


Leave a Reply