More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n
More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n
Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
\"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Any signals regarding the timing of interest rate cuts or changes to monetary policy strategies could prompt market reactions and shape investment decisions. Powell's transparency and clarity in communicating the Fed's intentions are important in an environment characterized by uncertainty and market volatility.<\/p>\n","post_title":"Morgan Stanley Faces $1.6 Million Fine over Regulatory Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-faces-1-6-million-fine-over-regulatory-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-02-19 01:48:31","post_modified_gmt":"2024-02-18 14:48:31","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15479","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14993,"post_author":"1","post_date":"2024-01-15 02:56:39","post_date_gmt":"2024-01-14 15:56:39","post_content":"\n Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Powell's update comes at a crucial time as the Fed assesses the effectiveness of its policies in curbing inflationary pressures. Analysts and investors will scrutinize his remarks for indications of potential policy shifts or adjustments in the Fed's approach.<\/p>\n\n\n\n Any signals regarding the timing of interest rate cuts or changes to monetary policy strategies could prompt market reactions and shape investment decisions. Powell's transparency and clarity in communicating the Fed's intentions are important in an environment characterized by uncertainty and market volatility.<\/p>\n","post_title":"Morgan Stanley Faces $1.6 Million Fine over Regulatory Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-faces-1-6-million-fine-over-regulatory-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-02-19 01:48:31","post_modified_gmt":"2024-02-18 14:48:31","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15479","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14993,"post_author":"1","post_date":"2024-01-15 02:56:39","post_date_gmt":"2024-01-14 15:56:39","post_content":"\n Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n Recent coverage<\/a> by Distributed showed that the US economy might enter into a mild recession in the face of another lending rate hike by the Federal Reserve to tackle the soaring inflation rate. Specifically, the Fed is expected to hike interest rates by a 25 basis, bringing the benchmark borrowing rate to between 5 and 5.25%, a step the economists fear could slow down growth and lead to a mild recession later in the year.<\/p>\n","post_title":"Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-to-slash-3000-jobs-amid-market-uncertainty","to_ping":"","pinged":"","post_modified":"2023-05-04 13:04:57","post_modified_gmt":"2023-05-04 03:04:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11435","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Meanwhile, the Federal Reserve is gearing up for its mid-March meeting<\/a> to evaluate strategies against inflation. Fed Chair Jerome Powell will hold a forthcoming congressional update on monetary policy scheduled for March 7 before the Senate Banking Committee.<\/p>\n\n\n\n Powell's update comes at a crucial time as the Fed assesses the effectiveness of its policies in curbing inflationary pressures. Analysts and investors will scrutinize his remarks for indications of potential policy shifts or adjustments in the Fed's approach.<\/p>\n\n\n\n Any signals regarding the timing of interest rate cuts or changes to monetary policy strategies could prompt market reactions and shape investment decisions. Powell's transparency and clarity in communicating the Fed's intentions are important in an environment characterized by uncertainty and market volatility.<\/p>\n","post_title":"Morgan Stanley Faces $1.6 Million Fine over Regulatory Compliance Lapses","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-faces-1-6-million-fine-over-regulatory-compliance-lapses","to_ping":"","pinged":"","post_modified":"2024-02-19 01:48:31","post_modified_gmt":"2024-02-18 14:48:31","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15479","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14993,"post_author":"1","post_date":"2024-01-15 02:56:39","post_date_gmt":"2024-01-14 15:56:39","post_content":"\n Morgan Stanley has agreed to pay $249 million to settle federal investigations surrounding misconduct in its lucrative block trading business. The Securities and Exchange Commission (SEC) has charged the bank and its former Head of the US Equity Syndicate desk with fraud.<\/p>\n\n\n\n According to a statement <\/a>by the regulator, these allegations involve improperly leaking confidential information ahead of bulk share sales. Morgan Stanley, a longstanding dominator in block trades, has been under SEC scrutiny since 2019. Pawan Passi, the former Head of the US Equity Syndicate Desk, faced charges of breaching trust by leaking confidential information.<\/p>\n\n\n\n The SEC's Chair, Gary Gensler, mentioned: \"Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential.\"<\/p>\n\n\n\n \"Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws. Thanks to the hard work of the SEC staff, they are being held accountable.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley to Slash 3,000 Jobs Amid Market Uncertainty<\/a><\/p>\n\n\n\n The SEC and the US attorney's office in Manhattan orchestrated a comprehensive probe, leading to a $249 million settlement, with $153 million in penalties from the Department of Justice. Gensler has condemned Morgan Stanley, stating that the bank and Passi abused sellers' trust by leaking confidential information and using it to gain an advantage in trades.<\/p>\n\n\n\n Block trades, involving bulk sales of shares by investment banks, are crucial market movers. The practice of \"wall crossing,\" where bankers communicate with potential buyers ahead of trades, comes with inherent risks. Morgan Stanley's breach of trust reveals the challenges of maintaining confidentiality <\/a>and the potential market impact when such information is leaked, the Financial Times<\/em> reported.<\/p>\n\n\n\n Pawan Passi, slapped with a $250,000 civil penalty by the SEC, is barred from working in the industry. However, he has secured a deferred prosecution agreement with the US attorney, contingent on demonstrating good behavior. Passi's admission of misconduct sheds light on the intense government scrutiny faced by Wall Street regarding block trading practices.<\/p>\n","post_title":"SEC Hits Morgan Stanley With $249 Million Fine In Block Trading Probe","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"sec-hits-morgan-stanley-with-249-million-fine-in-block-trading-probe","to_ping":"","pinged":"","post_modified":"2024-01-15 02:56:44","post_modified_gmt":"2024-01-14 15:56:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14993","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11435,"post_author":"13","post_date":"2023-05-03 16:30:58","post_date_gmt":"2023-05-03 06:30:58","post_content":"\n Morgan Stanley plans to eliminate 3,000 jobs from its global workforce in the second quarter due to slow deal-making and an uncertain economic environment; sources<\/a> told Reuters on Monday.<\/p>\n\n\n\n It would be the second consecutive time in quick succession that the investment bank trimmed its workforce after another 2% layoff last December. Part of the reason Morgan Stanley, which currently employs 82,000 people, cited in the recent past, includes a slowdown in mergers and acquisition deals and raising funds for its clients.<\/p>\n\n\n\n Last quarter, the New York-based bank saw its profits drop year-over-year, with a 32% decline in merger advisory and a 22% decline in its equity-underwriting business. Overall, the Wall Street banks have reported minimal Initial Public Offerings among startups amid a bearish market sentiment.<\/p>\n\n\n\n More importantly, growing fears that the global economy, specifically the US, could be sliding into a recession is weighing down on investment banks, including Morgan Stanley, pushing the need to reduce expenses. The firm\u2019s chief financial officer, Sharon Yeshaya, recently commented that expense management was a priority considering the broader market uncertainty and the high inflation rate.<\/p>\n\n\n\n
ADVERTISEMENT
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
\n
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
\n
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
\n
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
ADVERTISEMENT
\n
Breach of Trust in Block Trading<\/h2>\n\n\n\n
\n
Feared Mild Economic Recession<\/h2>\n\n\n\n
