NEW YORK, Feb. 25 (UPI) -- Morgan Stanley said it has reached an agreement to pay $2.6 billion to the U.S. Department of Justice to resolve a case the department planned to bring against the bank over sales of residential mortgage-backed securities.
According to a U.S. Securities and Exchange filing, the bank increased its legal reserves by $2.8 billion for mortgage cases. This decreased other income for 2014 by $2.7 billion or $1.35 per share.
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The settlement was reached in principle with the Justice Department, U.S. Attorney's Office and Northern District of California.