Morgan Stanley Bet That Went Awry Has Junior Trader at Center
- Bank is probing trades linked to Turkish lira, sources say
- London-based associate Eisner handled portfolio under scrutiny
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The trades at the heart of a probe that’s now rocking Morgan Stanley’s currency desks were bets linked to the Turkish lira managed by a 27-year-old trader.
The firm is investigating suspected mismarking of securities to conceal losses of as much as $140 million in a portfolio handled day-to-day by London-based Scott Eisner, a 2014 Yale University graduate and associate at the firm, according to people with knowledge of the matter. Morgan Stanley has already fired or placed on leave a handful of traders in connection with the incident, said the people, who asked not to be named discussing confidential information.