It has become a common headline on InsideCounsel.com: [Insert bank here] faces SEC charges related to [financial crisis impropriety]. But, one financial institution that has not faced many Securities and Exchange Commission (SEC) charges, is Morgan Stanley. These days, the bank is even holding boring shareholder meetings because there simply aren’t many fires to put out.
However, the under-the-radar financial institution now has one SEC penalty to mark on the board. On July 24, Morgan Stanley agreed to pay $275 million to settle allegations it misled investors in two separate mortgage bonds. The penalty is the only case that the bank has faced in connection with the financial crisis.