As head of securities products, Mr. Phillips directed the unit of Morgan Stanley<br />that packaged and sold billions of dollars of home loan bundles to Fannie Mae, Freddie Mac and other investors.<br />When those loans blew up and the government sued Morgan Stanley, Mr. Phillips was a named defendant in the initial case — a case<br />that resulted in the firm paying a $1.25 billion settlement.<br />In 2011, the Federal Housing Finance Agency, the overseer of Fannie<br />and Freddie, sued Morgan Stanley on their behalf, naming Mr. Phillips as a defendant.<br />Well after Mr. Phillips had left Morgan Stanley, the firm’s shareholders paid dearly for the New Century relationship.<br />Another financial crisis lawsuit filed against Morgan Stanley describes Mr. Phillips’s role at the firm, detailing<br />his close association with New Century Financial, one of the wildest of the Wild West subprime lenders.
