Morgan Stanley on Wednesday became the latest financial group to be hit by the actions of a suspected rogue trader after revealing that a London-based credit derivatives trader had incorrectly valued his positions, causing a $120m revenue hit. Morgan Stanley said it had discovered the error in May, alerted the FSA and suspended the individual pending an internal probe. The trader, identified by market participants as Matt Piper, is suspected of increasing the value of his derivatives book to present his performance in a better light. Separately, the FT reports that Morgan Stanley revealed that Q2 profits plunged 60% to $1bn and would have fallen further without $1.4bn in one-time asset sales.

This entry was posted by Gwen Robinson on Thursday, June 19th, 2008 at 5:43 and is filed under Capital markets, People. Tagged with morgan stanley. Edit this entry.