“Two big banks, Morgan Stanley and Bank of America Corp. on Tuesday disclosed details of the continuing regulatory and legal challenges they face for their actions during the crisis.”

“Morgan Stanley announced that it reached a preliminary agreement to pay $275 million to settle the Securities and Exchange Commission’s allegations that the firm misled investors in mortgage bonds that collapsed.”

“The expected pact, announced by the bank in its annual report filed with regulators, would mark the first enforcement case the SEC has brought against Morgan Stanley stemming from the crisis. The accord is still subject to approval from the SEC’s commissioners.”

“Bank of America, meanwhile, said new international and federal investigations have been launched into its foreign-exchange and mortgage practices, respectively, in its own regulatory filing.”

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Read full Wall Street Journal article here.