Morgan Stanley and JP Morgan Chase have agreed to buy back more than $7bn of securities and pay fines to settle allegations that they misled investors.
The deals were with the New York Attorney General and other regulators.
The Wall Street banks were accused of marketing debt products, called auction-rate securities, as much safer than they were
A pension fund that holds shares of Morgan Stanley has sued the giant investment bank’s directors, claiming they wasted corporate assets through “grotesque mismanagement,” including paying more than $100 million to two departing executives.
The suit, filed yesterday in U.S
Morgan Stanley will have to pay $850m (£462m) in damages to Revlon boss Ron Perelman after being found guilty of conspiring to defraud the financier.
A Florida court concluded that the US investment bank had acted improperly in relation to a 1998 deal in which Mr Perelman sold Coleman Inc. for $1
The New York Stock Exchange (NYSE) has hit US investment bank Morgan Stanley with a record $19m (£10m) fine.
The penalty, the largest so far imposed by the exchange, was the result of regulatory and supervisory lapses at Morgan Stanley, the NYSE said.
The NYSE said it had discovered “supervisory, operational and technological deficiencies” in some of Morgan Stanley’s operations