Getting your player ready...
NEW YORK — Fears of a growing investigation of Wall Street banks sent Morgan Stanley’s stock down Wednesday even as the company said it knew nothing about a reported inquiry into its mortgage-
backed-securities trading.
The Wall Street Journal reported that federal prosecutors are investigating whether Morgan Stanley misled investors about its role in a pair of $200 million derivatives whose performance was tied to mortgage-backed securities.
Shares of the investment bank closed at $27.80, down 58 cents, or 2 percent. Early in the session, shares fell to a low of $26.86.
Speaking in Tokyo on Wed nesday, Morgan Stanley chief executive James Gorman said, “We have no reason to believe there is any substance behind any supposed investigation.”
