SEC Charges Morgan Stanley with Misleading Investors in Subprime RMBS Offerings

Posted on August 18th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

The SEC charged three Morgan Stanley entities with misleading investors in a pair of residential mortgage-backed securities (RMBS) that the firms underwrote, sponsored, and issued. Morgan Stanley agreed to settle the charges by paying $275 million to be returned to harmed investors.

Morgan Stanley & Co. LLC, Morgan Stanley ABS Capital I Inc., and Morgan Stanley Mortgage Capital Holdings LLC,were collateralized by mortgage loans, Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 and Morgan Capital I Inc. Trust 2007-HE7, with an aggregate principal value balance of more than $2.5 billion. 

The SEC investigation found that Morgan Stanley misrepresented the current or historical delinquency status of those mortgage loans.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

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