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Alex Proimos
The charges concern the exposure of private information regarding the so-called "block trading", that is, the selling of big blocks of stock.
SEC Chairman Gary Gensler, whose remarks are cited in the news release, stated, "The (stock) sellers entrusted Morgan Stanley with material nonpublic information about pending block trade transactions with the full expectation that the bank would keep it confidential."
However, as Gensler points out, the lending organization and Pavan Passi, the former head of its equity syndication unit, took advantage of the information for their own gain.
The SEC also fined Passi $250,000.
SEC Chairman Gary Gensler, whose remarks are cited in the news release, stated, "The (stock) sellers entrusted Morgan Stanley with material nonpublic information about pending block trade transactions with the full expectation that the bank would keep it confidential."
However, as Gensler points out, the lending organization and Pavan Passi, the former head of its equity syndication unit, took advantage of the information for their own gain.
The SEC also fined Passi $250,000.
