Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

Morgan Stanley Under AG Radar, Lawsuit Around the Corner?

zacks.com | March 4, 2015

By Zacks Equity Research

Last month, Morgan Stanley (MS - Analyst Report) disclosed a $2.6 billion settlement with the U.S. Department of Justice (DOJ) to resolve claims concerning the sale of mortgage-backed securities (MBS), indicating the end of a multi-year probe. However, the relief was short lived as the Wall Street giant revealed a potential lawsuit by the New York Attorney General (AG) in its annual filing yesterday.

About the Potential Lawsuit

Per the regulatory filing, New York AG Eric Schneiderman may sue Morgan Stanley under the Martin Act regarding around 30 subprime securitizations. The New York AG’s office, which is part of the RMBS Working Group, revealed its intention to file a complaint against the company on Jan 13 earlier this year.

Morgan Stanley stated its disagreement with the allegations that accuse the company of violating federal law regarding underwriting, securitization and sale of subprime mortgage bonds by misrepresenting or omitting material information.

The negotiations to end probes into the shoddy mortgage practices of the banking giants have been going on for quite some time. Banks including JPMorgan Chase & Co. (JPM - Analyst Report), Bank of America Corp. (BAC - Analyst Report) and Citigroup Inc. (C - Analyst Report) along with Morgan Stanley have been consistently under the DOJ radar for allegedly providing mortgages to ineligible customers and selling MBS to investors without disclosing the associated risks.

Our Take

The major U.S. banks have already shelled out billions of dollars in settlements, which put considerable pressure on their earnings last year. Though the resolution of such cases will help these companies focus on core enterprises and revive profitability, resurgence of the same will adversely impact the financials as well as reputation of the banks.

Currently, Morgan Stanley carries a Zacks Rank #3 (Hold).



Back to March 2015 Archive


CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo



Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package