From BBC News:
Morgan Stanley will pay $3.2bn (£2.2bn) to US authorities to settle claims that it misled investors about risky mortgage bonds sold before the financial crisis.
Again, it’s a fine paid to the gov’t it doesn’t do anything to repay the investors who were ripped off.
We would have to see the actual terms of the deal, according to the article:
“Today’s settlement will deliver resources to the families and communities that need them the most, while helping New Yorkers avoid foreclosure, and spurring the construction of more affordable housing units statewide,” said Eric Schneiderman, New York’s attorney general.
As a long-time client of MSSB, I doubt I’ll see anything.
Though I can’t say directly they did anything to hose me. I was doing great until November, and have seen the market drop 16% since its peak. That’s the real problem.
I do have to laugh. The president, when talking about the economy, always trumpeted a couple key things - the unemployment rate, and the booming stock market.
For now, he doesn’t even have the latter to end his Presidency on. He stinks all around.
I would guess that whether you get a settlement is based on whether you bought any of their misrepresented bonds. If you just used MSSB to hold ETFs then you might not get anything. It depends however on the actual settlement.
I have always thought it misguided for presidents to claim credit for the stock market success. In most years it goes up, regardless of whose in power and it goes up or down based on its own whims.
Presidents tend to do that. They really don’t know which way to go.
Everyone wants low gas prices. Well, they got them so low now that unemployment is certain to shoot up worldwide.
They want affordable housing. But just don’t bring the home prices down for anything.
They also want higher incomes. Just don’t raise the interest rates for the elderly and other savers.
Good luck, Trump or Clinton.