“Morgan Stanley has agreed to pay $4 million to settle federal charges of failing to prevent the unauthorized purchase of $525 million in Apple stock by one of its customers,” Marcy Gordon reports for The Associated Press.
“The Securities and Exchange Commission announced the settlement Wednesday with the big Wall Street bank,” Gordon reports. “The SEC said Morgan Stanley violated a rule requiring brokerage firms to have strong risk measures in place before they give customers access to the markets.”
“In this case, a trader at customer firm Rochdale Securities made orders to buy Apple stock in October 2012 that exceeded Rochdale’s trading limits, according to the agency. The trader used the stock purchases to commit fraud by personally profiting from the trades, the SEC said,” Gordon reports. “New York-based Morgan Stanley neither admitted nor denied wrongdoing but did agree to refrain from future violations of the rule involved in the case, known as the market access rule. ”
Read more in the full article here.
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