Morgan Stanley probed by federal authorities; shares fall

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Regulators have now set their sights on Morgan Stanley as the Wall Street bank is reportedly being investigated by federal prosecutors over whether or not it misled investors about mortgage-related deals it helped design and sometimes took a bearish stance against.

According to The Wall Street Journal, the probe is at a preliminary stage and focuses on a pair of bond-related products called collateralized debt obligations, or CDOs, that were named after U.S. Presidents James Buchanan and Andrew Jackson. However, Morgan didn’t market the Dead Presidents deals; Citigroup  and UBS  did, the paper reported.

Full story Report: Morgan Stanley Probed by Federal Authorities; Shares Fall –