RMBS FINES CONTINUE

MS has agreed to pay a $3 billion + fine to settle claims it misrepresented the quality of RMBS securities issued in the run up of the financial crisis this month - another a BIG conduct related fine for the industry!  Importantly, MS admitted it failed to disclose information to prospective investors about the overall robustness of the mortgage pools. The US DOJ unearthed emails that suggested its compliance head was urged fall into line on the mortgage fun pre-crisis. This fine follows the $2.5 billion fine assessed to MS on mortgages earlier and underscores potentially the scale and challenges facing the authorities on the adoption of the new regulations.  MS is by no means the firm that has been fined the most, but it underscores the growing focus on the need to improve conduct and culture in financial markets.