How Morgan Stanley Sped Up U.S. Block-Trading Probe

The transcript discusses a federal investigation into irregularities in Wall Street's block trade market, focusing on potential information leaks by banks to favored hedge fund clients. The investigation, which began in 2018, gained momentum following the collapse of Archegos Capital Management. Authorities are examining whether banks like Morgan Stanley engaged in illicit activities during the unwinding of Archegos' positions, which resulted in significant market disruption.

What sparked the renewed interest in the investigation into block trades on Wall Street?

• A major stock market crash

• A new financial regulation by the SEC

• The involvement of Bill Wang's family office

• The collapse of Lehman Brothers

What is the primary concern of the DOJ and SEC in the block trade investigation?

• Insider trading by company executives

• Banks manipulating stock prices

• Illicit information leaks to hedge funds

• Unauthorized trading by individual investors

How far back does the investigation into block trades date?

• 2016

• 2015

• 2018

• 2017

What was Morgan Stanley's role in the aftermath of the Archegos collapse?

• They avoided any financial loss

• They were the last to cut their losses

• They increased their exposure to Archegos

• They were one of the first to unwind their positions

What are regulators trying to determine about Morgan Stanley's executives?

• Their participation in illicit information sharing

• Their decision-making in the Archegos collapse

• Their role in market manipulation

• Their involvement in insider trading