Morgan Stanley Downplays Queries Into Wealth Management Clients

Morgan Stanley said federal inquiries about its efforts to monitor the background of its wealth management clients aren’t new, and that the bank has already accounted for the costs of fixing its related processes.

“This is not a new matter. We’ve been focused on our client onboarding and monitoring processes for a good while,” Chief Executive Officer Ted Pick said Tuesday on the first-quarter earnings call. “We have ongoing communications with our regulators, as all the large banks do.”

Morgan Stanley shares took a dive last week after a report in the Wall Street Journal that a number of US ...