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Morgan Stanley Fined $1 Million by Finra Over Muni-Bond Markups

Morgan Stanley Smith Barney, the world’s largest brokerage, was fined $1 million by the Financial Industry Regulatory Authority for charging excessive markups and markdowns on bond transactions.

The firm was also ordered to pay $371,000 in restitution and interest to customers, Finra said today in a statement. The brokerage charged “higher than warranted” markups and markdowns, as much as 13.8 percent, on corporate and municipal bond deals, Finra said. In settling the claims, Morgan Stanley consented to the findings without admitting or denying wrongdoing, Finra said.