The news is on rueters....its in the original post...read it....if you don't like my posts stop reading them...I don't make this stuff up, I post links to EVERYTHING for your benefit...you should be thanking me.......
YHOO is such a crappy search engine (if you can even call it that) that they won't have this news for another hour, I will post the link when they get it.......
Morgan Stanley <MWD.N> fined $1 mln by NASD
NEW YORK, April 13 (Reuters) - Morgan Stanley Dean Witter
Discover & Co was fined $1 million for stock manipulation by
the NASDR, the regulatory arm of the National Association of
Securities Dealers, the parent of the Nasdaq stock market.
The NASDR alleged that Morgan Stanley manipulated the price
of 10 Nasdaq-traded securities in 1995 on two separate
"expiration Fridays." The stocks are part of the Nasdaq 100.
Its options expire on the third Friday of every month.
"We strongly disagree with the NASDR's conclusions and we
will appeal," said Jean Marie McFadden, spokeswoman for Morgan
Stanley.
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Morgan Stanley <MWD.N> fined $1 mln =2
The NASD also sanctioned seven Morgan Stanley traders,
including its head Nasdaq trader, David Slaine. Slaine is no
longer with Morgan Stanley and the firm would not comment on
his departure. He was fined $100,000 and suspended from the
brokerage industry for 90 days. The six other traders were
suspended for 30 days and fined $25,000, the NASD said.
Morgan Stanley is jointly and severally liable for the
traders' fines.
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Morgan Stanley <MWD.N> fined $1 mln =3
The decision, which stemmed from a complaint lodged on
October 25, 1996, came after a five-day hearing before the
NASDR Market Regulation Committee.
The panel found Morgan Stanley's OTC (over-the-counter)
desk had a deal to push stock prices higher to help cut losses
at another area of the firm, the program trading desk.
According to the NASDR decision, the arrangement worked
like this: the OTC desk would improperly push up the opening
'print' price, the first reported trade in each stock.
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Morgan Stanley <MWD.N> fined $1 mln =4
It would then sell back the amount of each stock needed to
the program traders at the print price, so the program trading
desk could cover its short positions and close out pre-existing
positions when the option on the Nasdaq 100 <.NDX> expired, the
NASD said.
The Nasdaq 100 is a list of the top 100 stocks on the
Nasdaq. The stocks are also part of the Nasdaq Composite.
The NASD said it uncovered the arrangement after complaints
from other market makers that the market for the stocks were
"locked" or "crossed".
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Morgan Stanley <MWD.N> fined $1 mln =5
A locked market occurs when the bid price equals the sell
price in the same security, and a crossed market occurs when
the bid price is greater than the sell price of a security.
The sanctions will not become effective until after the
appeals process, the NASDR said. Appeals go to the NASD
Regulation's National Adjudicatory Council (NAC), which can
increase, decrease, modify, or reverse any of the panel's
decisions.
((Jennifer Westhoven, Wall Street Desk 212 859 1881))
REUTERS
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