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Tuesday, December 30, 2014

'How Morgan Stanley Pushed Risky Subprime Mortgage Lending'

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.


    Posted by on Tuesday, December 30, 2014 at 10:04 AM in Economics, Housing | Permalink  Comments (13)


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