tyb
>>18785552 pb Morgan Stanley plans to cut 3K jobs
Morgan Stanley in Talks to Resolve DOJ, SEC Block Trading Probes
Morgan Stanley said it’s in talks with US prosecutors and regulators to resolve a probe into its block trading practices. “The firm is currently engaged in discussions regarding potential resolution of the investigations by the enforcement division of the U.S. Securities and Exchange Commission and the US Attorney’s Office for the Southern District of New York into various aspects of the firm’s blocks business,” the bank said Tuesday in a regulatory filing. The firm has previously said inquiries focus on whether employees shared or used information regarding impending block transactions in violation of securities regulations. The company has discharged two bankers who had been put on leave in relation to the issue and said the move was tied to allegations about their communications about impending block trades and client activity.
Morgan Stanley disclosed the investigations last year, and said it faces potential civil liability from allegations that it caused stock prices to drop before completing a block trade. Spokespeople for the SEC and Justice Department declined to comment. Wall Street has been watching closely as prosecutors dig into how banks work with hedge funds and other buyers to privately carry out stock sales big enough to move prices. Company founders and other major stakeholders hire bankers to help them discreetly unload large blocks of stock without sending the price into a tailspin. The banks, in turn, often work with hedge funds willing to take the risk of acquiring a slug of equities on short notice. Conversations for those deals can stray into legal gray areas, and if sellers see prices slip just before deals are done, they’re known to question whether information leaked. Bloomberg has previously reported that the Justice Department had sought communications involving more than a dozen professionals at Wall Street firms, including at Morgan Stanley and some of its key clients.
In December, Pawan Passi, who led the US equity syndicate desk and the bank’s communications with investors for equity transactions and an underling, Charles Leisure, formally exited the bank. They initially submitted resignations but their notice period was cut short and departure accelerated over unwillingness to work closely with the bank through the probe, people with knowledge of the matter told Bloomberg at the time.
https://www.bnnbloomberg.ca/morgan-stanley-in-talks-to-resolve-doj-sec-block-trading-probes-1.1915064
Magically goes away and will get the ubiquitous admit nothing, pay the fine and 'bidness as usual
from 2015 and then 5 years later JP Moran pays a $920m fine for doing exactly that and then the best part?…they typically do about $20-25m in profit on it's metals desk(s) but in 2020 they booked almost $1B in profit after having that DoJ fine levied…imagine that….
CFTC Closes Investigation Concerning the Silver Markets
https://www.cftc.gov/PressRoom/PressReleases/6709-13
JPMorgan Chase & Co. Agrees To Pay $920 Million in Connection with Schemes to Defraud Precious Metals and U.S. Treasuries Markets
https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-920-million-connection-schemes-defraud-precious-metals-and-us
So the way this was/is supposed to work is that JP Moran is not allowed to use it's prop trading (house accounts) per that agreement-that expires in Sept of this year-so they already have a few times and they just get someone else to do what they want and BTW if you saw the First Republic 'Deal' they are getting a $50B fixed term loan on top of all that but they don't say who that is coming from exactly..probably the FHLB (Federal Home Loan Bank) as they've already given out $1T in loans to all these regional banks or they've encumbered the DIF (FDIC Depositor Insurance Fund) by roughly half of what is left so you see why they can't really 'fail' a bank properly and also where did those $7.14B in OTC derivatives go that FRC had on it's books?… >asking for a fren
https://www.usbanklocations.com/bank-rank/derivatives.html
from 0428
During Banking Turmoil, FHLB Loans Rose to Record $1 Trillion
Outstanding loans by Federal Home Loan Banks to financial institutions surged to a record $1 trillion during March’s banking crisis, even as the pace slowed at the end of the month. The loans, which are known as advances, jumped 28% at the end of the first quarter from the close of 2022, the FHLB Office of Finance said on Friday. The increase was “driven by continued demand by depository members for liquidity,” according to a statement. Despite reaching an all-time high, the figure is below what some analysts had anticipated. It’s a signal that lenders’ rush to get cash to pay fleeing depositors might have faded, and that the worst of the stress in March may have abated. The data reflects lending as of March’s end, so the uptick in home loan bank financing sparked by the shaky status of First Republic Bank isn’t reflected.
https://www.bnnbloomberg.ca/during-banking-turmoil-fhlb-lons-rose-to-record-1-trillion-1.1913715