Bank of America Merrill Lynch Comments on Morgan Stanley Settlement

Bank of America Merrill Lynch provided color on Morgan Stanley's MS settlement with MBIA MBI in a research note published today. Bank of America Merrill Lynch has a Neutral rating and $24 price objective on Morgan Stanley. In the report, Bank of America Merrill Lynch states, "In addition to capital relief, the settlement eliminates pending RMBS litigation with MBIA. As we enter 2012, investors should be more comfortable forecasting MS' “core” earnings in ISG as the legacy MBIA overhang is eliminated." Shares of Morgan Stanley were trading at $15.70 at the time of posting, up 2.08% from Monday's market close.