Morgan Stanley has agreed to pay $102 million to settle an investigation in Massachusetts into the investment bank's subprime lending practices, a source familiar with the matter said on Thursday.

Massachusetts Attorney General Martha Coakley's office will announce details about the settlement at a news conference at 1 p.m.

Coakley has aggressively pursued Wall Street firms for their lending practices in the state. Earlier this year, the state was part of a group that won a $310 million settlement against State Street . A year ago, Massachusetts settled with Goldman Sachs for $60 million.

(Reporting by Svea Herbst-Bayliss and Scott Malone; Editing by Lisa Von Ahn)

Morgan Stanley