Morgan Stanley (MS) is in talks to possibly pay about $500 million to settle a probe by New York’s Attorney General Eric Schneiderman into whether the firm misled investors in mortgage bonds that cratered during the financial crisis, according to The Wall Street Journal.

The WSJ article said that the pact would clear up another headache for the New York firm and add to the $130 billion legal tab rung up by the largest U.S. banks for their actions during the crisis. 

An agreement between the New York firm and Mr. Schneiderman’s office isn’t imminent, and the terms under discussion have fluctuated. Aid to struggling homeowners will account for well over half of the total value of the settlement, though the form of the consumer relief isn’t clear, the people familiar with the matter said.