June 25, 2010 | last updated March 25, 2012 1:38 am

Morgan Stanley To Pay Mass. $100M

Morgan Stanley will pay the state and its residents more than $100 million as part of a settlement negotiated by Attorney General Martha Coakley related to financing for subprime mortgages.

As part of the agreement, the New York based bank will pay $58 million to more than 1,000 Bay State homeowners who were impacted by the securitization of subprime loans. Morgan Stanley will also pay $23 million to the state's pension fund to cover losses and will give $19.5 million to the state's general fund.

The suit Coakley brought against Morgan Stanley alleges that the company provided money for retail loan outlets to target low-income borrowers and "lure" them into accepting loans they could not afford.

The settlement is the latest Coakley has negotiated for the state now totaling $130 million for investors and borrowers impacting more than 15,000 homeowners.

Comments

Type your comment here:

Today's Poll
ADVERTISEMENTS
Most Popular on Facebook
Copyright 2017 New England Business Media