Morgan Stanley to Pay Under $300 Million to Settle Trading Probe
- Bank expected to pay between $200 million and $300 million
- No criminal charges for bank expected in block-trading probe
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Morgan Stanley is close to an agreement to pay $200 million to $300 million to resolve a yearslong US investigation into its employees’ handling of stock sales big enough to move markets, a probe that rattled major clients and reverberated across the industry.
The pact with federal prosecutors in Manhattan and the Securities and Exchange Commission could be announced in the coming days, according to people with knowledge of the situation. The penalty will be divvied up between the Justice Department and the SEC and won’t include any criminal charges against the bank, according to the people, who asked not to be identified discussing confidential information.