no comment needed. From Dealbook
In a reversal, Morgan Stanley is in the process of holding an auction for $2.48 billion in mortgages from subprime lender New Century, The New York Post reported Monday. The loans represent the collateral given to Morgan for a $2.5 billion credit line the firm extended to New Century, which currently finds itself in a precarious financial and legal situation.
The Post notes that earlier this month, Morgan assured the market that the loans and repurchase agreements it had made to the company were in order. But it now seems that Morgan has less confidence in the health of this collateral than it had two weeks ago. The Post says that Morgan does not want to draw attention to the sale, noting that it announced the sale of the 13,200 loans in a small public auction notice in a print ad Friday.