Morgan Stanley Pays $12.5 Million Over Its False Claims about 9/11 Attacks

[babylonsister]

Morgan Stanley to Pay $12.5 Million in E-Mail Case


By REUTERS
Published: September 27, 2007

Filed at 2:32 p.m. ET


NEW YORK (Reuters) - Morgan Stanley <MS.N> will pay $12.5 million to resolve charges that it failed to produce e-mails in arbitration cases and falsely claimed the e-mails were lost in the September 11, 2001, attacks.

The settlement, announced Thursday by the Financial Industry Regulatory Authority, which regulates brokerages, calls for the brokerage firm to pay a $3 million fine and $9.5 million into a fund to compensate several thousand investors who filed arbitration complaints.

It also resolves charges that Morgan Stanley failed to provide other documents to arbitration claimants.

The bank will hire an independent consultant to ensure it provides materials to retail brokerage clients in arbitrations. It did not admit wrongdoing.

Morgan Stanley has faced many legal and regulatory problems for withholding e-mails. Since 2002, it has agreed to pay more than $29 million to resolve three regulatory probes.

The problems stemmed in part from the destruction of the firm's New York City e-mail servers in the September 11 attacks. Morgan Stanley's brokerage business had its headquarters in the World Trade Center.

Millions of e-mails were presumed lost. But it was later revealed they had been backed up on other servers or on individual employee computers. Last December, the National Association of Securities Dealers, a FINRA predecessor, accused Morgan Stanley in a disciplinary complaint of falsely claiming it could not turn over e-mails.

more...

http://www.nytimes.com/reuters/business/business-morganstanley-fine-finra.html?_r=2&oref=slogin&oref=slogin

[Octafish]

1. $29 Million to 'resolve three regulatory probes' is chump change to MS.

Their CEO got a bonus of what, $40 Million, last year?

http://www.msnbc.msn.com/id/16228737/

Greed is not good. It is evil.

[MazeRat7]

2. He (John Mack, CEO of Morgan Stanley) also endorsed Hillary back in Apr. Go figure.

http://www.reuters.com/article/fundsFundsNews/idUSN2618378420070426

MZr7

[NoodleyAppendage]

3. Not surprising at all given that Hillary is the corporatist candidate of choice. n/t

J

[Octafish]

4. That IS surprising...

...to most Americans.



Money trumps even the Ludovico Technique.

[defendandprotect]

5. Just read about stock transactions that were conducted in WTC on 9/11 while attacks ongoing--!!!

Also . . . a reminder that WTC7 had the SEC records which were all destroyed knocking out many, many investigations --

And, ponder that the WTC was "privatized" just before the 9/11 attacks -- !!!

[defendandprotect]

6. Morgan Stanley should lose their license . . . .

[HCE SuiGeneris]

7. How many more millions/billions are unaccounted.

This is a farce. Pay a penny, pilfer a pound. :mad:

[Bozita]

8. Morgan Stanley has an interesting history with emails

Google this: Morgan Stanley Ron Perelman email

Enjoy!