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Morgan Stanley to pay US$3.2b to settle financial crisis-era charges

[WASHINGTON] Morgan Stanley is poised to pay US$3.2 billion to settle federal and state charges that it misled investors in residential mortgage-backed securities that later soured during the financial crisis, the New York Attorney General's office said on Thursday.

The case stems from an investigation by the Residential Mortgage-Backed Securities Group, a joint federal and state task force unveiled in 2012 by President Barack Obama that serves to investigate potential misconduct from the 2007-2009 financial crisis.