Skip to main content

Morgan Stanley: NY AG is Planning to Sue Us

Phil Hall
Mar 02, 2015

Morgan Stanley has announced that the office of New York Attorney General Eric Schneiderman is planning to file a lawsuit against the company in regard to its securitization of sub-prime mortgages in the period leading up to the 2008 economic crash.

The company called attention to the pending lawsuit on page 38 of its 327-page 10-K regulatory filing with the U.S. Securities & Exchange Commission (SEC).

“On Jan. 13, 2015, the New York Attorney General’s Office (NYAG), which is also a member of the RMBS Working Group, indicated that it intends to file a lawsuit related to approximately 30 sub-prime securitizations sponsored by the company,” said Morgan Stanley in its filing. “The NYAG indicated that the lawsuit would allege that the company misrepresented or omitted material information related to the due diligence, underwriting and valuation of the loans in the securitizations and the properties securing them and indicated that its lawsuit would be brought under the Martin Act. The company does not agree with NYAG’s allegations and has presented defenses to them to NYAG.”

The Web site for Attorney General Schneiderman’s office made no mention of any planned lawsuit. In fact, Schneiderman’s office, which turns out numerous press statements per week, has not issued any press releases that mention Morgan Stanley for several years.

This is the second time in a week that Morgan Stanley used its regulatory filings to announce legal issues. Last week, the company said it reached an agreement in principle with the federal government to resolve allegations relating to its handling of mortgage bonds prior to 2008.

Mar 02, 2015
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021
CFPB Finds Evidence Of Redlining And Deceptive Acts In 2020

Enforcement actions resulted in more than $124 million in consumer remediation and civil money penalties in 2020

Regulation and Compliance
Jun 29, 2021