Morgan Stanley traders fired, placed on leave after $100M loss: Report
They made investors believe the firm's emerging-market currencies were better than they were.
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Morgan Stanely fired or placed on leave at least four employees after they attempted to conceal a loss between $100 million and $140 million, Bloomberg News reported Thursday.
The company is investigating the alleged mismarking that involved making investors believe the firm's emerging-market currencies were doing better than they actually were, people familiar with the matter told Bloomberg. The New York-based investment bank declined to comment to FOX Business.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MS | MORGAN STANLEY | 134.99 | +3.30 | +2.51% |
Bloomberg identified the traders as Scott Eisner and Rodrigo Jolig of London and Thiago Melzer and Mitchell Nadel, two senior colleagues based in New York, according to people familiar with the situation.
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Trading in foreign-exchange options rose to $294 billion a day in April, Bloomberg reported, citing data from the Bank for International Settlements.
Morgan Stanley's third-quarter earnings presentation showed a 21 percent surge in total fixed-income trading revenue, which the company said was "partially offset by a decline in foreign exchange."