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Morgan Stanley agreed Thursday to pay $3.2 billion to settle US accusations it hid high risks in mortgage securities in actions that contributed to the 2008 financial crisis. New York Attorney General Eric Schneiderman said his state and the US Justice Department had reached agreement with the large US bank in the longstanding probe on abuses in residential mortgage backed securities (RMBS) that suffered trillions of dollars in losses in the crisis. Schneiderman's office said in a statement that Morgan Stanley had misrepresented the strength of the RMBS it sold investors, pitching them as higher quality when it knew the securities carried substantial risks from the low-quality home loans which underpinned them.
A battle between rival drug gangs at a prison killed 52 people in the northeastern Mexican city of Monterrey, authorities said on Thursday, days ahead of a planned visit by Pope Francis to another jail in Mexico´s far north. The incident was one of the worst in a series of deadly riots in recent years to rock the country’s overpopulated prisons, which often house inmates from different drug cartels. Fighting broke out before midnight in two areas of the Topo Chico prison between a faction of the brutal Zetas gang and another group, Nuevo Leon state Governor Jaime Rodriguez said.