The receivership for the failed United Western Bank in Denver will land a portion of the Federal Deposit Insurance Corp.’s $62.95 million mortgage-backed securities claims settlement with Morgan Stanley, officials announced Tuesday.
The settlement follows federal and state securities law claims that Morgan Stanley & Company LLC misrepresented securities it sold to three failed banks: United Western, Colonial Bank of Montgomery, Ala., and Securities Savings Bank of Henderson, Nev., the FDIC said in a statement.
The amount that will go to United Western’s receivership was not immediately disclosed.
There are four classes of creditors: deposit creditors, whose claims were transferred to the FDIC, which insured the deposits; those who did business with the bank; subordinated debt holders, and stockholders, said FDIC spokesman David Barr.
Each class must be fully satisfied before money can be made available to the next.
As of Feb. 19, 2015, deposit creditors had received 84 percent of their claims, .
The FDIC is the acting receiver of United Western, . First-Citizens Bank & Trust Co. assumed United Western’s $1.65 billion in deposits.
The settlement announced Tuesday brings the FDIC’s residential mortgage-backed securities claims settlements against Morgan Stanley to $86.95 million, the FDIC said.
Alicia Wallace: 303-954-1939, awallace@denverpost.com or @aliciawallace
