Wall Street Firms Said to Face U.S. Block Trading Probe

The video discusses the scrutiny faced by investment banks over block trades, a method used by hedge funds and private equity to execute large trades without affecting market prices. An investigation initiated in 2018 by the SEC and DOJ is examining potential misuse of confidential data. While Morgan Stanley and Goldman Sachs are mentioned, no charges have been filed yet. The probe aims to address concerns about price movements and data misuse in these trades.

What is the primary role of investment banks in block trading?

• To ensure trades are executed at the lowest price

• To manage trades off market hours to prevent price movement

• To execute trades during market hours

• To provide loans for block trades

When did the investigation into block trades initially begin?

• 2015

• 2018

• 2020

• 2022

Which major financial institutions are mentioned as being questioned in the investigation?

• Deutsche Bank and HSBC

• Bank of America and Wells Fargo

• Morgan Stanley and Goldman Sachs

• JPMorgan Chase and Citibank

What does the opening of a probe by the DOJ and SEC indicate?

• That the investigation has concluded

• That an investigation is underway but no charges are confirmed

• That there is confirmed wrongdoing

• That charges have been filed

What concern has been raised regarding block trades?

• The involvement of too many financial institutions

• The lack of transparency in trade execution

• The high cost of executing trades

• The potential misuse of confidential data