Morgan Stanley Falls Down Prime Broker Pecking Order, Sued In 'Pay-To-Play' Case

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The Asian prime brokerage unit of Credit Suisse has replaced Morgan Stanley as the second largest firm servicing the region's $148bn hedge funds industry, a survey showed.

Reuters reports that the the annual survey by industry tracker AsiaHedge, released this week, found that Goldman Sachs remains Asia's top prime broker with 179 clients and total assets under management of $24.6bn.

Credit Suisse overtook Morgan Stanley by adding 14 new clients and $2.4bn in assets over the last year, a first for any prime broker in Asia, the survey showed.

Credit Suisse replaces Morgan Stanley as No. 2 Asia prime broker

In the meantime, the news agency also reports that Morgan Stanley has been sued by an Alabama medical laboratory that claims it steered retirement plan business to ING U.S. and others in exchange for extra fees in an illegal 'pay-to-play' scheme.

Skin Pathology Associates Inc. filed suit in federal court in Manhattan on May 16, accusing Morgan Stanley of violating federal laws governing retirement plans through its dealings with co-defendant ING Life Insurance and Annuity Co and other 401(k) service providers.

Morgan Stanley sued in 'pay-to-play' retirement plan case

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