Morgan Stanley may pay up to $1 billion to resolve US probe into private stock sales

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<span>© Reuters. FILE PHOTO: A screen displays the trading information for Morgan Stanley on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 19, 2022. REUTERS/Brendan McDermid/File Photo</span><br />
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<p>(Reuters) -Morgan Stanley may pay between $500 million and $1 billion to resolve a long-running U.S. probe into how it handled private stock sales, Semafor reported on Tuesday, citing people familiar with the matter.</p>
<p>A possible settlement with the Justice Department and the U.S. Securities and Exchange Commission (SEC) may also see the bank tighten its internal controls, the report said.</p>
<p>The Wall Street giant, however, likely will not plead guilty to a crime, the report added.</p>
<p>Morgan Stanley declined to comment.</p>
<p>The bank said earlier this year that it was cooperating with U.S. regulators over investigations into its block-trading practices and providing authorities with information. </p>
<p>It had also at the time talked about facing civil claims from market participants who said they were harmed by the company&#8217;s practices.</p>
<p>Block trades are single orders for large trades, typically placed by institutional investors, which their broker-dealer drips into the market over time so as not to move the price. </p>
<p>The SEC investigators have been probing such practices since at least 2019, Reuters had previously reported. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/morgan-stanley-may-pay-1-billion-to-resolve-us-probe-into-private-stock-sales–semafor-3215758">Source link </a></p><p>The post <a href="https://forextraderhub.com/morgan-stanley-may-pay-up-to-1-billion-to-resolve-us-probe-into-private-stock-sales.html">Morgan Stanley may pay up to $1 billion to resolve US probe into private stock sales</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>