Banking giant Morgan Stanley (NYSE:MS) was fined $249 million on Jan. 12 for leaking information on trades by some of its top clients.
Bloomberg reports that the breach of trust cost companies including Blackstone (NYSE:BX) and Oaktree Capital Management millions of dollars.
Federal prosecutors, along the with the Securities and Exchange Commission, accused Morgan Stanley of breaching the trust of its clients by leaking confidential information that it was then able to profit from at the expense of its clients.
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Confidentiality Request Breached
The investigation revealed that a top Blackstone executive reached out in March 2019 to Morgan Stanley’s Pawan Passi, then head of the bank’s U.S. equity syndicate desk, seeking help to exit a substantial real estate investment.
Despite Blackstone’s request ...