In this sales contest, Morgan Stanley is the loser.
The New York Post reports that James Gorman’s bank and the Massachusetts securities regulator last week agreed to settle a probe into allegations that Morgan Stanley ran a highly improper sales contest to boost its book of securities-based loans.
Morgan Stanley did not admit or deny any wrongdoing but agreed to pay the state $1 million.
The Post last year reported exclusively on the sales contest.
Gorman’s bank rewarded brokers 35 to 50 basis points of their increase in loans once they reached certain thresholds, according to a statement of facts in the 24-page consent order.
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