Morgan Stanley in talks to settle SEC's mortgage probe-WSJ

Tue Feb 25, 2014 3:29pm EST

Feb 25 (Reuters) - Morgan Stanley may face a penalty of at least $200 million to settle allegations by the U.S. Securities and Exchange Commission that it misled investors in mortgage-bond trades, the Wall Street Journal said on Tuesday.

The Wall Street bank is in advanced talks to settle the SEC's probe, which stems from bonds that collapsed during the 2007-2009 financial crisis, the newspaper said, citing a source familiar with the matter.

A Morgan Stanley spokesman did not immediately respond to a request for comment.

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