GO
Loading...

Enter multiple symbols separated by commas

Morgan Stanley Settles With Insurer, Shares Rise

Morgan Stanley said it has reached a settlement with MBIA that will get some risky financial instruments off its books and will resolve pending litigation between the two companies.

Morgan Stanley
Oliver P. Quillia for cnbc.com
Morgan Stanley

The agreement includes a cash payment from MBIA , but Morgan Stanley did not disclose the amount of the payment.

The bank said that the settlement will result in a $1.8 billion pre-tax charge in the current quarter.

MBIA had filed a lawsuit against Morgan Stanley over risky residential mortgage-backed securities, but is now withdrawing that suit. Morgan Stanley will withdraw its lawsuit challenging the bond insurer's restructuring.

The bank said the settlement significantly cuts its risky assets and helps boost a key capital measure.

Banks

  • Brian Moynihan

    The New York Times explores the environment at Bank of America that led to Thompson's departure and what lies ahead.

  • Management shakeup: Catalyst for investment?

    Philippe Bodereau, MD & global head of financial research at Pimco, reveals whether earnings and new management roles have made him more bullish on European banks.

  • This is the top credit risk for Asian banks

    Eugene Tarzimanov, VP and senior credit officer at Moody's Investors Service, explains why the unwinding of asset bubbles is the biggest risk for Asian banks in the months ahead, followed by China's slowdown.