Morgan Stanley Derivative Accord Wins Approval in First Case
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Morgan Stanley won approval of a $4.8 million accord with the U.S. over claims it helped manipulate electricity prices, in what the Justice Department called its first effort to get disgorgement from a financial firm that used derivatives to aid anticompetitive behavior.
In accepting the agreement, U.S. District Judge William Pauley in Manhattan turned aside complaints from a not-for-profit organization that Morgan Stanley didn’t admit wrongdoing. Pauley, citing the Justice Department, said the case marks the first time the government filed an antitrust suit against a financial firm involving derivative agreements.