Regulators Investigate Morgan Stanley's Wealth Arm

TL;DR Summary
Morgan Stanley's stock plunged after reports of federal probes into its wealth arm's client-vetting practices and potential money laundering risks. Regulators including the SEC, the Office of the Comptroller of the Currency, and the Treasury Department are investigating whether the bank properly vetted potential clients and monitored their financial activity, particularly with international clients. Despite investing in compliance and technology, the bank faces potential supervisory action from the Federal Reserve.
- Morgan Stanley Dives As Regulators Open Wealth Arm Probe Investor's Business Daily
- Morgan Stanley's wealth arm under probe by multiple regulators, WSJ reports Reuters
- Report: Morgan Stanley Facing Probes of Anti-Money Laundering Practices PYMNTS.com
- Morgan Stanley Stock Drops Sharply After WSJ Report of Regulatory Probes Barron's
- Morgan Stanley shares drop on WSJ probe report CNBC
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