- Last week, Morgan Stanely (MS +1.1%) cut a deal for $2.6B to settle a federal probe into pre-crisis mortgage activities, but the bank - in its 10-K - disclosed the New York Attorney General has informed it of a potential lawsuit relating to roughly 30 subprime MBS deals.
- Morgan has set aside $2.8B for legal costs from still-unresolved cases, Other potential suits could come from California, Virginia, and Illinois.
- Previously: Morgan Stanley removes overhang with mortgage settlement (Feb. 26)