Violation Tracker Individual Record

Morgan Stanley
Current Parent Company: 
Morgan Stanley
August 14, 2008
Offense Group: 
financial offenses
Primary Offense: 
investor protection violation
Violation Description: 

JPMorgan Chase and Morgan Stanley agreed to buy back $7 billion in securities as part of the resolution of multistate litigation alleging they misled customers in the marketing and sale of auction rate securities. The announcement did not specify how much each company would buy back. Here we assume the total was divided evenly between them. They also agreed to pay civil penalties; for Morgan Stanley the amount was $35 million.

Level of Government: 
Action Type: 
agency action
Multistate Attorneys General Case
Civil or Criminal Case: 
HQ Country of Parent: 
HQ State of Parent: 
New York
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
financial services
Specific Industry of Parent: 
financial services
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.