Morgan Stanley (MS) said Wednesday it has reached a tentative $2.6 billion settlement of civil allegations federal authorities planned to file against the investment bank over mortgage securities.
In a public filing, Morgan Stanley said it had increased its legal reserves by approximately $2.8 billion for an agreement in principle with the civil divisions of the U.S. Department of Justice and the U.S. Attorney’s Office for California’s northern district.
Other major U.S. banks, including Citigroup, Bank of America and JPMorgan Chase have previously paid billions of dollars to resolve similar government investigations over mortgage securities.
Goldman Sachs disclosed Monday that federal authorities have said the investment banking giant could face a civil lawsuit over the investment banking giant’s handling of mortgage securities before the financial crisis.
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