On paper, Glenn Hadden seemed to be the ideal person to run a large bond trading operation at Morgan Stanley when he was hired in early 2011. Hadden, a former Goldman partner, was one of the most profitable bond traders on Wall Street.
But there was more to his story than just stellar financial results. He had left his previous employer, Goldman Sachs, after questions about his trading activity. And now, Hadden is under investigation over his trading in Treasury futures while at Goldman, according to a regulatory filing.
The New York Times reports that specifically, regulators at the CME Group, which runs commodity and futures exchanges, are investigating whether Hadden’s purchases or sales of Treasury futures late in the trading day manipulated closing prices in the market and, in turn, made other of his trades more profitable, according to people briefed on the matter who were not authorized to speak publicly.
Hadden, who is now the head of the global interest rates desk at Morgan Stanley, is said to have been given formal notice by the CME that an inquiry is under way.
Hit the link below to access the complete New York Times article: