Morgan Stanley Hit With SEC Charge: SEC...
From Times Staff and Wire Reports
Morgan Stanley Hit With SEC Charge: SEC investigators accused Morgan Stanley & Co. of selling stock that the firm wasn’t entitled to sell in the wake of the 1987 stock market crash. Morgan Stanley, the nation’s fifth-largest investment firm, denied the allegations. The SEC’s enforcement division accused the firm of selling more than 2.4 million shares of KaiserTech Ltd. in October, 1987, to satisfy margin deficiencies in an account of former KaiserTech Chairman Alan E. Clore. Margin is the down payment put up by investors who are buying securities on credit.
