02/03/2016-2
http://www.wsj.com/articles/morgan-stanley-to-pay-63-million-to-settle-mortgage-bond-suit-1454446633
Morgan Stanley to Pay $63 Million to Settle Mortgage-Bond Suit
Morgan Stanleyagreed to pay $62.95 million to settle allegations指控that it misrepresented歪曲mortgage-backed securities sold before the 2008 financial crisis.
The settlement was struck with the Federal Deposit Insurance Corp., which had sued Morgan Stanley on behalf of three banks that failed either during or after the crisis. As part of the deal, Morgan Stanley didn’t admit liability for its alleged actions.
The FDICsaid the investment bank misrepresented claims in the offering documentsfor 14residential mortgage-backed securitiessold to Colonial Bank of Montgomery, Ala.; Security Savings Bank of Henderson, Nev.; and United Western Bank of Denver.
Morgan Stanley declined to comment on the settlement.
These specific kinds of bonds, knownas RMBS, are usually backed by home mortgages.
Tuesday’s settlement brings to $86.95 million the value of all RMBS-related settlements Morgan Stanley has agreed to with the FDIC. Last year, Morgan Stanley agreed to pay $24 million to settle similar claims involving RMBS sales to Franklin Bank of Houston, which had also collapsed.
In February 2015, Morgan Stanley agreed to pay $2.6 billion in a separate agreement stemming from the sale of mortgage bonds, handing the Wall Street firm its biggest legal bill from the financial crisis.The accord ended a U.S. Justice Department probe into allegationsMorgan Stanley deceived欺騙investors by misrepresenting the quality of the home loans the firm packaged into bondsand follows multibillion-dollar pacts協(xié)定the government struck with other big banks.
文章大意：
Morgan Stanley在之前發(fā)行residential mortgage-based security的時候未向投資者正確披露underlying asset(home loans)的quality，從而被罰款
個人感受：
企業(yè)道德在金融尤其投行是一個至關(guān)重要的東西，不知一個畢業(yè)生從innocent analyst變黑化的時間又有多長？如果能穩(wěn)賺的東西投行不會騙人吧，也許是這個東西實在賣不出去了？
相關(guān)知識：
太多了，老子已忘。
Mortgage:
如A要買房子，但無法一次付清。于是向B簽訂協(xié)議說每段時間給B多少$的錢，同時住進房子里。但是當A default, B有權(quán)利將房子收回賣給別人。因此，B固定時間段可以收到一筆錢，同時在default的時候有權(quán)利access to the asset來減少自己的損失。
在這里的話B是將residential loan賣給morgan stanley了，morgan Stanley首先要給B一筆錢。同時，CDEFG也會將相同的loan賣給morgan.因此morgan就有很多不同形式的loan.于是morgan將這么多不同的loan pool到一起變成一個證券的形式賣出給investor，并負責給予此security的coupon。
另外，morgan會自己組合他所擁有的asset, issue出來不同等級(trench)的security, ranging from AAA to ???.于是investor根據(jù)自己的喜好購買。當公司破產(chǎn)？（還是default?）的時候，先從最低級absorb loss,然后再越來越高。（hedge fund一般購買高風險的）
一個問題就是其實這些背后的固定資產(chǎn)本質(zhì)不是低風險的，但是公司將很多不同類型的資產(chǎn)combine在一起，diversification將其“變成”高評級的債券發(fā)行出去。因此很多ABS都有高評級，而人們卻demand higher return (也是因為人們知道他們的風險)
其余的都忘光了。金融危機跟這個有關(guān)。
以前筆記：
The securitization process has 2 distinct elements:
1. The transfer of assets from the Seller to a special purpose vehicle (SPV)
2. the SPV’s issuance of debt to fund the purchase of the assets
A bankruptcy remotecompany is a company within a corporate group whose bankruptcy has as little economic impact as possible on other entities within the group. A bankruptcy remote company is often a single-purpose entity.
