Morgan Stanley Loses Bid to Throw Out MBIA Lawsuit

A New York judge rejected Morgan Stanley’s (MS) bid to throw out a lawsuit accusing the bank of fraudulently inducing bond insurer MBIA Inc (MBI) to insure $223.2 million of risky mortgage debt. MBIA filed the lawsuit in December accusing Morgan Stanley and its Saxon Mortgage Services Inc unit of making false representations about the quality of the underwriting on a pool of 4,979 second-lien residential mortgages. – Reuters