Morgan Stanley to pay $2.6b to settle charges

Morgan Stanley said on Wednesday that it has agreed to pay $2.6 billion to settle with the US federal government over its role in the mortgage bubble and subsequent financial crisis.

The settlement makes Morgan Stanley the latest Wall Street bank to reach a settlement with federal authorities, following the billions paid by JPMorgan Chase, Bank of America and Citigroup.

The $2.6 billion will go to "resolve certain claims" the Justice Department intended to bring against Morgan Stanley related to its mortgage division, the bank said in a regulatory filing.