SEC Probes Barclays, Morgan Stanley Bankers Over Puerto Rico
- Firms underwrote island’s $3.5 billion sale in March 2014
- Was last major issue by island before it declared bankruptcy
George Pataki Says Puerto Rico Can Pay Its Debts
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The U.S. Securities and Exchange Commission may take action against bankers from Barclays Plc and Morgan Stanley for their roles in Puerto Rico bond sales before a worsening fiscal crisis sent it hurtling toward bankruptcy.
The SEC’s staff made a preliminary recommendation that the agency file an enforcement action against Barclays’ Luis Alfaro and James Henn for alleged violation of fair dealing rules for their roles in the island’s debt sales, according to brokerage records filed with the Financial Industry Regulatory Authority.