SEC Charges Morgan Stanley And Former Executive Pawan Passi with Fraud In Block Trading Business
Portfolio Pulse from Benzinga Newsdesk
The SEC has charged Morgan Stanley and its former executive Pawan Passi with fraud related to the bank's block trading business. The charges allege that they provided institutional clients with confidential information about block trades, which was then used to front-run the trades. This practice gave an unfair advantage to certain clients and undermined market integrity. Morgan Stanley has agreed to pay a $35 million penalty to settle the charges, while Passi has not settled and is litigating the matter.
January 12, 2024 | 1:35 pm
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Morgan Stanley has been charged with fraud by the SEC and agreed to pay a $35 million penalty, which may negatively impact investor sentiment and the stock price in the short term.
The SEC's fraud charges against Morgan Stanley are significant and the $35 million settlement indicates a serious breach of conduct. This news is likely to shake investor confidence and could lead to a negative perception of the company's governance practices, potentially causing a short-term decline in the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100