Morgan Stanley to Pay $3.2 Billion Over Flawed Mortgage Bonds.

[elleng]

'Morgan Stanley will pay $3.2 billion to strike a settlement with state and federal authorities over the Wall Street firm’s creation of mortgage-backed bonds before the financial crisis.

Nearly a year ago, Morgan Stanley announced that it expected to pay $2.6 billion in the settlement. Since then, though, Morgan Stanley was pushed to offer more money, with much of the additional money going to New York State.

The settlement, which was announced on Thursday morning, is one of the last that is expected to come out of a working group that President Obama helped form in 2012 to deal with the flawed mortgaged-backed bonds that banks put together before the financial crisis. In the go-go years that preceded the crisis, Wall Street banks purchased subprime mortgages and packaged them into bonds that ended up suffering significant losses.'>>>

http://www.nytimes.com/2016/02/12/business/dealbook/morgan-stanley-to-pay-3-2-billion-over-flawed-mortgage-bonds.html?

[valerief]

1. And no one gets arrested. nt

[Wellstone ruled]

2. Zero funds change hands in these settlements.

There is a charge to the Debit ledger and a addition to the Profit ledger,meaning Morgan gets a 2.6 billion deduction in the Federal Tax Bill. Just another accounting gimmick to pacify someone at the DOJ.