Morgan Stanley is the latest target of MBIA's quest to win back more than $2 billion of claims it paid on MBS that went bust during the financial crisis.

MBIA Monday sued Morgan Stanley for breaches of contract, claiming the bank defrauded it into insuring $223 million of MBS whose value derives from a pool of 5,000 subordinate-lien residential mortgages.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.