Morgan Stanley to pay $150 million for pushing toxic mortgage bonds on California’s teachers and public employees HW+

Morgan Stanley has agreed to a $150 million settlement to resolve claims that it misrepresented the poor-quality of pre-crisis mortgage bonds and cost California teachers and public employees millions of dollars, the California Attorney General announced Thursday. The settlement puts an end to a three-year investigation into Morgan Stanley’s failure to reveal the true nature of the mortgage-backed securities is was selling to CalPERs and CalSTRS.