Morgan Stanley faces fine, says report

Deals

US securities regulators plan to penalize Morgan Stanley $6.1 million for allegedly overcharging customers on $59 million in bond sales, The Wall Street Journal reported on Thursday.

Morgan Stanley allegedly overcharged customers of its retail brokerage unit in more than 2,800 separate bond sales from the firm's own inventory, the report quoted people familiar with the case as saying. The securities regulators plan to fine the blue-chip securities firm $1.5 million and order $4.6 million in restitution to customers who paid markups as high as 18% in 2001 for surplus notes issued by Kemper Lumbermens Mutual Casualty Co., according to the report.

The case shows how difficult it can be for individual investors to know what price they should be paying for individual bonds - unlike stocks or mutual funds whose current market prices are widely disseminated, said the report. (peopledaily.com.cn)

ADVERTISEMENT

Climate change hurts economy, but creates new business oppor... Analysis

Climate change hurts economy, but creates new business oppor...

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Dentons rehires banking and finance partner Appointments

Dentons rehires banking and finance partner

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.