Morgan Stanley, New York in Talks to Settle Probe

April 20, 2015 1:54 AM

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Morgan Stanley is in talks to pay about $500 million to settle a probe by New York's attorney general into whether the Wall Street firm misled investors in mortgage bonds that cratered during the financial crisis, people familiar with the matter said.

A deal with New York's top litigator, Eric Schneiderman, would likely include some cash from Morgan Stanley as well as a chunk of consumer relief. The pact would clear up another headache for the New York firm and add to the $130 billion legal tab rung up by the largest U.S. banks for their actions ...

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