Morgan Stanley and BayernLB end mortgage bond spat

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Morgan Stanley and Bayerische Landesbank agreed to end litigation over almost $486m worth of residential mortgage-backed securities, according to a court filing.

Bloomberg News reports that Bayerische Landesbank, based in Munich, sued Morgan Stanley in New York State Supreme Court in Manhattan in January 2012 over securities purchased in 22 offerings in 2006 and 2007, saying the lender knew the loans underlying the bonds were riskier than promised and didn’t conform with underwriting standards.

The parties said in the filing earlier this week that they have agreed to end the suit. The filing didn’t state whether the firms had settled the matter, or any terms of such an accord. 

Hit the link below to access the complete Bloomberg article:

BayernLB and Morgan Stanley Agree to End Mortgage Bond Suit

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