The Fed's bond-buying programme had prompted investors to sell mortgage-backed bonds
and Treasury securities and deposit the proceeds with US retail and commercial bank accounts.
5billion to cover US legal action on toxic mortgage-backed bonds
sold before the financial crisis.
The 300-year-old lender said it now expected a "potentially elongated period" before settling claims that it mis-sold US mortgage-backed bonds
before the 2007-09 financial crisis.
2 billion) -- the category includes Treasuries, government agency bonds, mortgage-backed bonds
and investment grade corporate bonds -- and municipal bond ETFs ($741 million).
Meanwhile, at least two other banks have stopped issuing some types of mortgage-backed bonds
, saying an industry-wide standard is needed for handling negative rates on the debt.
The bank on Tuesday reported a quarterly net profit of 792 million Swiss francs from 690 million francs a year earlier, when results were marred by an $885 million settlement with the US housing regulator over the mis-selling of mortgage-backed bonds
This SEC settlement covers Morgan Stanley's role as an underwriter and sponsor of subprime mortgage-backed bonds
that tanked soon after they were issued in 2007.
17-18 policy meeting, the Fed said it would reduce monthly purchases of Treasuries and mortgage-backed bonds
starting in January and would probably keep its benchmark interest rate low as long as projected inflation remained below its 2% goal.
8 per cent on concerns over its exposure to a US mis-selling probe on mortgage-backed bonds
, and uncertainty over UK Finance Minister George Osborne's examination of a possible split-up of the bailed-out lender.
Sentiment in the sector was also hurt by reports that JPMorgan Chase has reached an PS8bn deal with US authorities to settle a series of civil probes over sales of mortgage-backed bonds
in the run-up to the financial crisis.
htm) UBS agreed to pay $885m in a settlement with the FHFA over allegations the scandal-ridden Swiss bank misrepresented mortgage-backed bonds
during the housing boom.
9 percent after saying it's under federal criminal investigation for practices tied to sales of mortgage-backed bonds