Barred Morgan Stanley Banker Joins Firm That Got His Trade Leaks

A former Morgan Stanley banker who was punished in the block-trading probe that rattled Wall Street joined one of the firms that was the recipient of confidential information he leaked.

Pawan Passi was hired by Frank Fu’s CaaS Capital Management, according to people familiar with the matter. CaaS made its name partnering with banks as they sought buyers for block trades, becoming one of the biggest US funds dedicated to buying big chunks of stocks.

Pawan Passi

Photographer: Alex Kent/Bloomberg

A yearslong investigation into block trading that reverberated across the industry culminated in January after Morgan Stanley agreed to pay $249 million to ...