Morgan Stanley to pay $2.6 billion to settle likely claims over mortgage bond sales

(Reuters) - Morgan Stanley said it will pay $2.6 billion to the U.S. Department of Justice and United States Attorney's Office for the Northern District of California to resolve potential claims stemming from sale of mortgage bonds before the financial crisis.

Morgan Stanley also increased its legal reserves by about $2.8 billion, the bank said in a regulatory filing. (http://1.usa.gov/1FueJWH)

(Reporting by Neha Dimri in Bengaluru; Editing by Sriraj Kalluvila)