Bloomberg reports that the firm’s traders generated more than $100m on three days in the period, compared with seven days in the second quarter of 2011, the New York-based company said Monday in a regulatory filing.
None of the daily losses exceeded the firm’s value-at-risk, a measure of how much the bank estimates it could lose on 95% of days.
The news organisation also reports that Morgan Stanley was accused in a lawsuit by Hong Leong Finance Ltd. of Singapore of deceptively selling investments it had designed to fail.
Hong Leong said in a complaint filed Monday in federal court in Manhattan that it entered into a distribution agreement with the investment bank to sell about $72.4m worth of the so-called Pinnacle notes created from August 2006 to December 2007. The notes later failed and the Singapore-based company was required to compensate customers for at least $32m in losses, according to the filing.
'Morgan Stanley secretly, deceptively and wrongfully invested the investors’ principal in very risky underlying assets', according to the complaint, filed by David S. Stellings, a lawyer for Hong Leong.
Finally, Reuters reports that brothers Michael and Yoel Zaoui, two top London investment bankers, rivals in M&A for many years, may work together via a company they have set up called Zaoui Capital, according to Companies House filings.
Goldman Sachs (GS.N) veteran Yoel Zaoui retired from the bank, where he was global co-head of mergers and acquisitions, in April, four years after Michael ended his long dealmaking career at Morgan Stanley (MS.N).