Morgan Stanley agreed to pay the state of California $150 million for allegedly misleading investors during the 2003-2007 mortgage crisis.
California Attorney General Xavier Becerra announced the settlement Thursday, alleging that the New York-based financial services giant (NYSE: MS) concealed the high risk of mortgage-backed securities that it sold to the California Public Employees’ Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS).
