The Department of Justice has struck a multi-billion dollar deal with Morgan Stanley in what is expected to be one of the last major steps in resolving investigations related to banks’ roles in the subprime mortgage crisis.

The New York Times DealBook reports that Morgan Stanley will pay $2.6 billion to settle a Justice Dept. investigation into the bank’s sale of securities backed by troubled mortgages.

Morgan Stanley’s deal comes after other large banks made similar settlements last year. Bank of America agreed to pay a record $16.7 billion, while Citi Group agreed to pay $7 billion. Back in 2013, JPMorgan Chase struck a deal for $13 billion.

According to DealBook, Morgan Stanley was responsible for a smaller volume of securities backed by troubled mortgages.

The settlement with Morgan Stanley centers on the bank’s purchase of mortgages from New Century and other subprime mortgage originators. Morgan Stanley then packaged those mortgages into securities that it sold to investors.

A 2012 lawsuit filed by the American Civil Liberties Union provided emails and documents that showed Morgan Stanley executives knew about the low quality of loans when it purchased them.

Unlike settlements with Bank of America, Citi and JPMorgan, the deal with Morgan Stanley does not provide homeowner relieve, DealBook reports.

With Morgan Stanley’s settlement now in the books, there is only one big bank holding out on reaching a settlement with the Dept. of Justice. Goldman Sachs, which is rumored to be in preliminary talks with regulators, has yet to reach an agreement to resolve its sale of troubled mortgages.

Morgan Stanley in $2.6 Billion Mortgage Settlement [The New York Times DealBook]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.