Morgan Stanley Says New York Intends to Sue Over Subprime
The Morgan Stanley headquarters in New York.
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Morgan Stanley said New York Attorney General Eric Schneiderman intends to sue the company, alleging it misrepresented or omitted information when underwriting 30 subprime securitizations.
The lawsuit will be brought under the state’s Martin Act, New York-based Morgan Stanley said Monday in a regulatory filing. The bank is in talks with Schneiderman on a possible settlement, according to a person briefed on the discussions who asked not to be identified because the negotiations are private.