Morgan Stanley Fined for Trading Violations
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The NASD said Tuesday that it fined Morgan Stanley $2.9 million for widespread violations relating to stock and bond trades from 1999 to 2006.
The NASD, formerly the National Assn. of Securities Dealers, said the violations by the investment bank and its brokerage arm included a failure to report or the misreporting of thousands of stock and bond trades and a failure to execute hundreds of customer trades at the best prices.
According to the NASD, Morgan Stanley violated rules set by the NASD, the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.
Morgan Stanley did not admit wrongdoing but agreed to a censure. It committed to taking corrective action to improve regulatory compliance and make restitution to some corporate and municipal bond customers.
The regulatory penalty is at least the third assessed against Morgan Stanley this year.
On June 27, the company agreed to pay $10 million to settle SEC charges that it failed to maintain proper procedures against possible insider trading.
On May 10, it agreed to pay $15 million to settle SEC charges that it failed to preserve tens of thousands of e-mails sought for investigations related to initial public offerings and analyst research.
Morgan Stanley shares rose 59 cents to $67.42.
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