Morgan Stanley Settles Massachusetts Probe

Massachusetts authorities said on Thursday that Morgan Stanley has agreed to pay $1.5 million to reimburse investments in auction-rate securities by the cities of New Bedford and Hopkinton.

"We appreciate Morgan's cooperation and are pleased that it has agreed to perform this thorough review of all its city and town clients in the Commonwealth in order to determine whether additional reimbursements are appropriate," said Massachusetts Attorney General Martha Coakley in a statement.