Morgan Stanley ousts traders for concealed losses
The incident confirms that internal controls at investment banks remain weak
Stocks impacted: Morgan Stanley (MS)
Morgan Stanley fired or placed on leave at least four traders over an alleged mismarking of securities that concealed losses of between $100 million and $140 million. In particular, the US investment bank giant is investigating the suspected mismarking, supposedly linked to emerging-market currencies. According to some sources with knowledge of the matter, the ultimate employment status of the suspected traders isn’t yet clear, but at least some of them are leaving the company. In general, bank's currency options desk has struggled this year amid a slump in the volatility that generates profits for traders. This incident confirms that internal controls at investment banks remain weak despite it has been ten years since the financial crisis already. On Wednesday, Morgan Stanley stocks closed 0.75% higher. Today, in a shortened session, after a Thanksgiving holiday in the US, the shares could get lower amid latest news.
Make profit on it right now!