Morgan Stanley Ousts FX Traders as It Probes Concealed Loss
- Bank probes allegedly mismarked emerging-market-linked trades
- Morgan Stanley declines to comment on disciplinary actions
This article is for subscribers only.
Morgan Stanley fired or placed on leave at least four traders over an alleged mismarking of securities that concealed losses of between $100 million and $140 million, according to people with knowledge of the matter.
The firm is investigating the suspected mismarking, which was linked to emerging-market currencies, said the people, who asked not to be identified as the details are private. Tom Walton, a spokesman for the New York-based bank, declined to comment.