May 12, 2010
US federal prosecutors are investigating whether Morgan Stanley misled investors about financial derivative deals against which it sometimes bet, The Wall Street Journal reported Wednesday.
The suspicions were similar to civil fraud charges faced by Goldman Sachs, which is also under investigation for how it designed and sold mortgage-related products before the financial crisis.
But Morgan Stanley chief executive James Gorman said he was not aware of any federal investigation into the investment bank’s practices involving the complex financial products.
“We’ve not been contacted by the Justice Department about any transactions that were raised in the Wall Street Journal article and we have no knowledge whatsoever of a Justice Department investigation,” he told reporters in Tokyo.
“We have looked into the situation internally in some detail.”
This article was posted: Wednesday, May 12, 2010 at 10:06 am