NEW YORK (TheStreet) -- Shares of Morgan Stanley (MS) are higher by 2.54% to $34.32 as the financial institution is said to be in talks with the Department of Justice regarding the settlement of allegations it misrepresented the quality of mortgage-backed securities it sold, Financial Times reported.
Last week, Bank of America (BAC) agreed to settle its mortgage-backed securities case with the DOJ for a record $16.5 billion.
Officials are still gathering evidence from Morgan Stanley, and negotiations and potential deals are still a way off, Financial Times added.
Goldman Sachs (GS) is also said to be in talks with the DOJ. On Friday, Goldman Sachs agreed to pay $1.2 billion to settle a similar case with the Federal Housing and Finance Agency.
Separately, TheStreet Ratings team rates MORGAN STANLEY as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MORGAN STANLEY (MS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."