This content is not available in your region

Morgan Stanley to pay $150 million to settle California mortgage securities charges

Access to the comments Comments
By Reuters
Morgan Stanley to pay $150 million to settle California mortgage securities charges
FILE PHOTO: The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in the Manhattan borough of New York City, January 20, 2015. REUTERS/Mike Segar   -   Copyright  Mike Segar(Reuters)

(Reuters) – Morgan Stanley will pay $150 million to settle charges it concealed the risk of mortgage-backed securities that were sold to two large California pension funds, the state’s attorney general Xavier Becerra announced on Thursday.

The California Public Employees’ Retirement System (CalPERS) will receive $122 million from the settlement, while the California State Teachers Retirement System (CalSTRS) will receive $8 million. The remainder will go to Becerra’s office.

(Reporting by Jonathan Stempel in New York; Editing by Marguerita Choy)