Morgan Stanley (MS) said it reached an agreement in principle with the United States Department of Justice and the United States Attorney’s Office for the Northern District of California to pay $2.6 billion to resolve certain claims the financial enforcers intended to bring against the investment bank.
A deal was expected to be coming very soon.
"In connection with the resolution of this matter, the Company has, subsequent to the announcement of the Company’s 2014 earnings on January 20, 2015, increased legal reserves for this settlement and other legacy residential mortgage-backed securities matters by approximately $2.8 billion, which increased Other expenses within the Institutional Securities business segment for year ended December 31, 2014," the filing with the Securities and Exchange Commission said.
"This decreased income from continuing operations by $2.7 billion and diluted EPS from continuing operations by $1.35 for the year ended December 31, 2014"
In July, Morgan Stanley agreed to pay $275 million, after months of fine-tuning the deal, to settle charges brought by the Securities and Exchange Commission over defrauding investors in a pair of residential mortgage-backed securities.
