- In its quarterly financial report, Morgan Stanley admitted that multiple actions could be taken against it by the SEC, citing the fact that the SEC has contacted firm officials twice over the past few weeks.
By allegedly not disclosing "sources, types and amounts of compensation" given by investment companies, the New York firm is in danger of disciplinary action. Still another enforcement action stems from allegedly selling Class B fund shares when other share classes would be more appropriate for investors. Morgan Stanley also said that New York State Attorney General Eliot Spitzer has accused the firm of improper fund trading.
To add to its problems, Morgan Stanley is currently being sued by several parties for its dealings with AOL Time Warner stemming from its time as Time Warners financial advisor.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.