Finance

Morgan Stanley Fined $2M for First Republic Insider Trading

Sep 6, 2024 1 min read

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Morgan Stanley has agreed to pay $2 million to settle an investigation by Massachusetts Secretary of the Commonwealth William Galvin into insider sales at First Republic Bank. The investigation focused on the bank's failure to properly monitor trades by First Republic's executive chairman, James Herbert II, prior to the bank's collapse. The settlement does not include any admission or denial of wrongdoing by Morgan Stanley.

The investigation revealed that Morgan Stanley did not confirm whether Herbert was trading based on material nonpublic information at the time. The Department of Justice is also investigating stock trading activities by some of First Republic Bank's employees during the period leading up to the bank's failure. Morgan Stanley has expressed satisfaction in resolving the matter.

#markets #business #fraud #insider-trading

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