Morgan Stanley’s Passi Faces U.S. Block-Trading Probe
- Investigators are said to examine hedge funds’ communications
- Passi, who went on leave, hasn’t been accused of wrongdoing
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U.S. authorities are examining the involvement of one of Morgan Stanley’s top equities executives in block trades as part of an investigation into whether banks improperly alerted certain clients to market-moving transactions, according to people with knowledge of the matter.
Pawan Passi, who ran Morgan Stanley’s U.S. equity syndicate desk and led the firm’s communications with investors for equity transactions, is among individuals whose activities are facing scrutiny, the people said, asking not to be identified describing the confidential inquiry. Bloomberg reported in November that the company had put Passi on leave.