Federal Probe of Mortgage Lenders Goes Nowhere

CHICAGO (Reuters) – Federal criminal investigations into failed mortgage lenders IndyMac Bancorp and New Century Financial Corp have stalled, the Wall Street Journal reported on Saturday. A third probe, into Washington Mutual Inc (WaMu), has ended with no charges being filed, the Department of Justice said. Both the IndyMac and Century Financial investigations were essentially …

Morgan Stanley pays $7.5 million to avoid trial

Morgan Stanley, owner of Saxon Mortgage, and other Wall Street firms agreed to pay $100 million to settle a lawsuit accusing them of propping up American Business Financial Services Inc. A spokeswoman for Morgan Stanley, which agreed to pay $7.5 million, said the New York company wanted to “avoid a lengthy trial.” Morgan Stanley stopped …