Morgan Stanley MS, -1.86% confirmed late Thursday that federal investigators are probing its block-trading business. Morgan Stanley has been responding to requests for information from the U.S. Securities and Exchange Commission beginning in June 2019, the investment bank said in a filing. It has also been responding to requests for information from the U.S. Attorney’s Office for the Southern District of New York over the same matter starting in August 2021, Morgan Stanley said in the filing. Citing people familiar with the investigations, the Wall Street Journal reported last week that regulators are looking into several Wall Street banks, including Morgan Stanley, to determine whether bankers improperly have tipped hedge-fund clients ahead of large share sales.
