Editor’s Note: And after Morgan Stanley takes the tax credits, it will have paid literally nothing for its fraudulent conduct. Stanley is to pay $400 million of consumer relief including repurchasing defective loans that it will resecuritize, doctor-up the docs and sell at a profit. Crime pays for Big Banks.
Moves past 85% mark in consumer relief obligation
Morgan Stanley is nearly finished with its $400 million consumer relief obligation that is part of the $3.2 billion mortgage bond settlement it reached last year.
The settlement covers Morgan Stanley’s “deceptive” mortgage bond practices in the run-up to the financial crisis and requires the company to provide $400 million in consumer relief for New York residents affected by the company’s alleged actions.
A new report from Eric Green, the independent monitor of the consumer-relief portion of the settlement, shows that Morgan Stanley’s consumer relief total now exceeds $338 million.
In the last few months, Green’s office credited Morgan Stanley with $29.78 million of credit for consumer-relief activities that the company performed.
That pushes Morgan Stanley’s amount of cumulative credit conditionally validated by Green’s office to $338,921,327, which is 85% of its $400 million requirement.
According to Green’s office, Morgan Stanley received the $29.78 million of consumer relief credit for the follow activities:
- $29,037,500, for one grant to assist New York local government units and eligible organizations in consumer-relief efforts, including the acquisition of non-performing loans (that they will take back and sell to investors for a profit)
- $746,646 for two grants to New York municipalities and eligible agencies to support housing quality improvement and enforcement programs
“I am pleased to be able to confirm that Morgan Stanley continues to make steady progress toward meeting its obligation to provide consumer relief to New York communities in need of housing assistance,” Green said in the report.
