Morgan Stanley reportedly fired traders for hiding foreign exchange losses

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Morgan Stanley corporate headquarters in Times Square, New York.

Source: Morgan Stanley

At least four New York-based Morgan Stanley traders have been fired or fired after allegedly covering up a loss of between $ 100 million and $ 140 million, according to a new report from Bloomberg News.

The traders in question may have mismarked, or deliberately mispriced, certain emerging market currency transactions, according to Bloomberg, who cited people with knowledge of the matter. At least some of the traders, based in New York and London, are said to be leaving the company, according to the report.

Trading revenues remain important to the bank, although CEO James Gorman is shifting the bank’s focus from its trading and advisory activities to its wealth management services.

The bank’s third-quarter results, released in October, showed revenue of $ 10.1 billion, about $ 500 million more than analysts expected. The company’s bond trading desks grew 21% year-over-year to $ 1.43 billion. It was $ 320 million more than Street expected. Income from stock transactions amounted to $ 1.99 billion, which was just below the Rue’s estimate of $ 2.1 billion.

A Morgan Stanley rep declined to comment.

-To read the full Bloomberg article, click here.

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