Eric R. Dinallo, chief of the investment protection bureau in the office of the
The securities industry is facing new challenges, Kempf said in a statement. Just last week, Massachusetts regulators sued Morgan Stanley for enticing its brokers with higher commissions and bonuses to sell in-house funds. The state believes these sales tactics earned Morgan $5 million to $8 million in commissions since January alone. Regulators are also looking into the relationship between Morgan Stanleys analysts and IPO underwriting.
Dinallo worked closely with Spitzer on the $1.4 billion regulatory settlement with 10 investment firms, including Morgan. "Morgan Stanleys legal problems are probably not over. Who better to handle that than the guy who had previously been going after them?" Tim Woolston, a portfolio manager at
"This guy knows all the players and is able to interpret their actions," Brad Hintz, an analyst at
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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.
