Morgan Stanley To Make Peace With Nuns

Morgan Stanley could be set to resolve a legal case with two groups of nuns after lawyers told a High Court judge in London that a “provisional” settlement had been agreed.

The Sisters of Charity of Jesus and Mary, and the Holy Faith Sisters are among a group of 88 Irish investors who are suing the bank for allegedly profiting at their expense by failing to redeem an investment linked to Dresdner Bank bonds.

The nuns claim that Morgan Stanley waited to redeem €5.88m of euro-denominated notes until they had recovered to a level where Morgan Stanley would incur no losses. The nuns say the move cost them $4.7m and $780,734.80 in lost interest payments.

“It is likely this matter will be disposed of,” said Laurence Rabinowitz QC, for Morgan Stanley.

Representing the investors, Andrew Sutcliffe QC confirmed a provisional agreement had been reached, but stated the action has not yet been settled.