Regulator sues Morgan Stanley, eight others over faulty securities

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(Reuters) - A U.S. regulator filed lawsuits against Morgan Stanley and eight other banks over the sale of nearly $2.4 billion in mortgage-backed securities to two credit unions that later failed, according to a filing.

Morgan Stanley and Morgan Stanley Capital I Inc, Barclays, JPMorgan Chase & Co's unit Bear Stearns, Credit Suisse Group, Royal Bank of Scotland Group and UBS sold faulty securities to Southwest and Members United corporate credit unions, the National Credit Union Administration (NCUA) said in its complaint.

Goldman Sachs Group Inc, Wachovia Corp, a unit of Wells Fargo & Co and Residential Funding Securities LLC, now Ally Securities, also sold faulty securities to Southwest, NCUA said.
Regulator sues Morgan Stanley, eight others over faulty securities | Reuters