AIG could sue Morgan Stanley over pre-financial crisis deals

Morgan Stanley sponsored or underwrote $3.7 billion mortgage pass-through certificates bought between AIG between 2005 and 2007.

Financial services firm Morgan Stanley may have had one of the toughest storms to weather during the 2008 financial crisis, reportedly losing about 80 percent of its value. In the wake of the crisis, though, the firm hasn’t had nearly the legal trouble of, say, Bank of America or J.P. Morgan Chase.

However, Morgan Stanley expects that to change. In its quarterly securities filing on Nov. 4, the firm says that insurer American International Group Inc. (AIG) may file a lawsuit against Morgan Stanley over deals worked on before the financial crisis.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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