Morgan Stanley has tentatively agreed to pay $275 million to resolve a federal securities investigation related to subprime mortgage bonds the investment firm underwrote in 2007.
In a filing late Tuesday, Morgan Stanley said it had reached an “agreement in principle†with the staff of the Securities and Exchange Commission to settle the case. As part of the agreement, the investment firm would be charged with violating certain securities rules, but the company did not disclose the details of the S.E.C.’s case.
The firm said it would not admit any wrongdoing in the matter, which represents one of the final cases that the agency was building against a Wall Street firm over its activities leading up to the financial crisis.
Overall, the firm said its litigation expenses in 2013 rose to $1.9 billion from $513 million in 2012 and $151 million in 2011.
