Danielle Kurtzleben, vox.com:
Damning court filings show Morgan Stanley pushed risky subprime mortgage lending:
- Court filings say Morgan Stanley, a major Wall Street bank, pushed subprime lender New Century into making riskier and riskier mortgage loans, the New York Times reports.
- The filings include damning emails, showing that Morgan Stanley employees knew about and even joked about some borrowers' inability to pay on their mortgages.
- The Justice Department is now investigating the connection between Morgan Stanley and New Century.
- The fines further tarnish the reputation of a big bank that, despite its heavy involvement in mortgage-backed securities, until recently had few crisis-related legal troubles.