"Morgan Stanley Settles Block Trading Probe for Under $300 Million"
Morgan Stanley is close to reaching a settlement of between $200 million and $300 million to resolve a government probe into its handling of large stock sales, with the penalty to be divided between the Department of Justice and the Securities and Exchange Commission. The investigation relates to "block trades" executed on behalf of clients, and discussions have included the possibility of holding off prosecution in exchange for a penalty. The settlement would remove a longstanding concern for the bank and its former CEO had previously committed to staying on to address the probe.