Morgan Stanley is set to pay $150 million to settle charges it misled two large California public pension funds about the risks of mortgage-backed securities they bought prior to the 2008 global financial crisis.
California Attorney General Xavier Becerra said the California Public Employees’ Retirement System (CalPERS) will receive $122 million from the settlement, while the California State Teachers Retirement System (CalSTRS) will receive $8 million. The other $20 million will cover costs and help fund other investigations.