Morgan Stanley (MS) Falls After WSJ Report on Multiple Regulatory Probes into Wealth Management Business – Hagens Berman

Hagens Berman, National Trial Attorneys, Encourages MS Investors with Substantial Losses to Contact Firm’s Attorneys

SAN FRANCISCO - Hagens Berman urges Morgan Stanley (NYSE: MS) investors who suffered substantial losses to submit your losses now.


Contact An Attorney Now: [email protected], 844-916-0895

Morgan Stanley (MS) Investigation:

On Apr.11, 2024, the price of Morgan Stanley shares fell $4.81, or down over 5%, on unusually heavy volume after the WSJ reported that the SEC, OCC, other Treasury offices, and the Federal Reserve are all probing Morgan Stanley “over how it vets clients who are at risk of laundering money through the bank’s sprawling wealth management division.” 

According to the report, “[t]he main issues regulators are looking at boil down to whether Morgan Stanley has been sufficiently investigating the identities of prospective clients and where their wealth comes from, as well as how it monitors its clients’ financial activity[]” and “[s]ome of the probes are focused on the bank’s international clients.”

Previously, on Nov. 8, 2023, the WSJ reported that the Federal Reserve had given Morgan Stanley a list of risk management controls for vetting foreign wealth-management clients that required remediation and, when the regulator found in 2021 and 2022 that many items on that list remained unfixed, the Fed privately reprimanded the bank.

“We are investigating whether Morgan Stanley may have potentially put wealth-management growth ahead of its compliance and internal control responsibilities,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Morgan Stanley and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Morgan Stanley investigation, read more »

Whistleblowers: Persons with non-public information regarding Morgan Stanley should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

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