A legal row between two groups of nuns and investment bank Morgan Stanley could be settled out of court.

Lawyers told a High Court judge in London that the bank had agreed a "provisional" settlement with investors. The Sisters of Charity of Jesus and Mary, the Holy Faith Sisters and the Irish Veterinary Benevolent Fund are among a group of 88 Irish individuals who are suing the bank. The nuns allege Morgan Stanley profited at their expense by failing to redeem an investment linked to the debt of German financial group Dresdner Bank and in so doing cost them millions of pounds. In 2005 the nuns and other Irish investors bought euro-denominated notes worth €5.88m (£4.8m) linked to Dresdner Bank bonds, but accuse Morgan Stanley of failing to deliver on a contractual pledge to redeem the debt after the German bank's credit rating was cut below an agreed point.

Instead, Morgan Stanley is alleged to have postponed redeeming the notes until the value of Dresdner Bank debt had recovered to a level whereby the US bank would incur no losses, but which the nuns say ended up costing them $4.7m, as well as $718,734.80 in lost interest payments.....Read more here: Morgan Stanley looks to settle with nuns