Corbyn “fan” here- did his comments on MS did contain some factual errors? As covered here for those who want to read further:
https://news.sky.com/story/corbyn-takes-on-wall-street-but-do-his-claims-stand-up-11151621
This view now seems to have taken hold generally- that MS and other institutions who didn’t need a bailout were therefore blameless.
But thats wrong. MS had to pay a $3.2B settlement in the US over sub-prime lending:
https://www.npr.org/sections/thetwo-way/2016/02/11/466399992/morgan-stanley-will-pay-3-2-billion-for-contributing-to-mortgage-crisis
“Morgan Stanley knew that it was selling securities backed by residential mortgages with “material defects” — such as loans that were “underwater,” where the loan was larger than the value of the house.
Internal emails helped document that the company was fully aware of the high risks of the loans it was securitizing, the New York attorney general’s office writes:
In a May 31, 2006 email, the head of Morgan Stanley’s team tasked with doing due diligence on the value of properties underlying the mortgage loans asked a colleague, ‘please do not mention the ‘slightly higher risk tolerance’ in these communications. We are running under the radar and do not want to document these types of things.’
“In another email on November 21, 2006, a member of the Morgan Stanley due diligence team forwarded a list of questionable loans, seeking review and approval to purchase them and adding ‘I assume you will want to do your ‘magic’ on this one?’ “
The settlement announced Thursday was negotiated by a working group including both federal and state authorities, led by New York Attorney General Eric Schneiderman.”
Corbyn is right- bailout or no, they were up to their necks in it.