Morgan Stanley Unit Fined Over Trader’s $1.3 Billion Bet
This article is for subscribers only.
Morgan Stanley Smith Barney, the brokerage venture of Morgan Stanley and Citigroup Inc., was fined $450,000 after a trader amassed a $1.3 billion bet in 2009, Financial Industry Regulatory Authority records show.
The brokerage didn’t have enough controls in place to detect that Jared Weinryt, 31, had breached his $116 million trading limit as he made overnight bets on futures, Finra said this month. The trades led to losses for Morgan Stanley Smith Barney of about $14.9 million, according to Finra.