UPDATE 1-Morgan Stanley, NY attorney general in $500-mln talks to settle probe-WSJ.com
April 19, 2015 at 21:27 PM EDT
NEW YORK, April 19 (Reuters) - Morgan Stanley is in discussions to pay $500 million to settle an investigation by New York's attorney general into whether the Wall Street bank misled investors in taking mortgage bonds that lost value during the financial crisis, the Wall Street Journal reported Sunday in its online edition, citing people familiar with the matter.