Morgan Stanley said yesterday that it had reached a $2.6 billion settlement with the Justice Department over the sale of mortgage securities before the financial crisis, the New York Times DealBook blog reported today. Other large banks have already struck similar settlements, with Bank of America agreeing to pay a record $16.7 billion last year and JPMorgan Chase settling for $13 billion in 2013. Compared with other Wall Street banks, Morgan Stanley was responsible for a smaller volume of securities backed by troubled mortgages, the investments at the heart of the settlements.
