It’s not just Morgan Stanley that is coming under scrutiny. According to Charlie Gasparino, the SEC is investigating a host of forms, for their role in selling toxic securities before the financial crisis.Citigroup and Deutsche Bank are getting the probe too, says Gasparino.
No Wells Notices have been issued to any of the firms though because the investigation is ongoing and right now seems just to be about information-gathering.
Gasparino’s sources say the SEC initially requested information from all the firms last year, then it came back and subpoenaed Citigroup and Deutsche Bank for additional documents.
Or as Gasparino puts it, “The Government Probe Into Wall Street Sales Is Widening.”
There seems to be a lot of “probing” going on lately. For the fun kind, check out Ray Dalio’s Bridgewater “Management Principles.”