Morgan Stanley - always looking out for you?
Posted: May 26th, 2009 | Filed under: Blog | Tags: Lee, lee munson, Munson, Portfolio Asset Management | No Comments »This is a good one! And I thought only Goldman Sachs traded ahead of clients! Read here. So, a guy named Nilesh Shroff was front running trades. I know, big deal, but this is not 1999 anymore. People won’t stand for this crap anymore. At least the FSA took some action after three strikes. . . .
When clients told him to buy particular stocks, he bought those stocks for the firm first, causing the price to increase before he executed the customers’ trades. If the customer order was to sell, he first sold on behalf of the firm, decreasing the price.