Another Wall Street Bank Under Investigation
LYNN NEARY, host:
NPR's business news starts with another Wall Street investigation.
(Soundbite of music)
NEARY: It's not just Goldman Sachs. The Wall Street Journal reports that another big bank, Morgan Stanley, is under the microscope of federal prosecutors and government regulators. They're looking into the bank's marketing of complex mortgage securities known as CDOs. According to the Journal, Morgan Stanley sold these securities to investors, and at the same time, placed bets against those investments.
Morgan Stanley's CEO James Gorman has responded to the report. Bloomberg News quotes him as saying: "There's no substance to allegations that the bank misled investors."
NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.