Morgan Stanley Fined $2 Million for Failing to Monitor Insider Trades

Massachusetts regulators penalize the bank over improper stock sales by a former First Republic CEO before the bank's collapse.

The $2 million fine addresses Morgan Stanley's oversight failures in monitoring insider trades.
A former First Republic CEO sold $6.8 million in stock before the bank's collapse, avoiding significant losses.
Morgan Stanley did not confirm whether the CEO was trading on non-public information, violating compliance rules.
The settlement requires Morgan Stanley to review its policies and train employees on insider trading prevention.
This case highlights the importance of rigorous compliance in financial institutions.