Morgan Stanley Discloses U.S. Probe Into Its Block-Trading Business
- Firm says it’s received requests from prosecutors since August
- That followed inquiries from the SEC dating back to mid-2019
Morgan Stanley headquarters in New York.
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Morgan Stanley said U.S. regulators and prosecutors are investigating various aspects of its block-trading business, acknowledging the firm itself is under scrutiny as authorities dig into how Wall Street bankers and money managers carry out stock transactions big enough to move prices.
The New York-based investment bank has been responding since August to requests for information from the U.S. Attorney’s Office for the Southern District of New York, the company said in a regulatory filing Thursday. It’s also been fielding requests from the U.S. Securities and Exchange Commission since June 2019, the firm said, noting that it’s cooperating.