Morgan Stanley and FHFA Reach RMBS Settlement

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On February 4, Morgan Stanley disclosed in a regulatory filing that it has agreed, in principle, to a settlement for US$1.25 billion with the Federal Housing Finance Agency to resolve claims pending in the United States District Court for the Southern District of New York related to the sale of US$10.58 billion in RMBS between 2005 and 2007. The FHFA, as conservator for Fannie Mae and Freddie Mac, asserted claims for violations of federal and state securities laws on the basis of allegedly false and misleading statements and omissions in the registration statements and prospectuses of securities sold to Freddie Mac and Fannie Mae. Form 8-K. Complaint.