Morgan Stanley Inspected in South Korea Over Short Selling (1)

Morgan Stanley’s stock short selling practices are being inspected by South Korea as part of a broader effort by the nation’s financial watchdog to clamp down on bets against equities, according to a person familiar with the matter.

The Financial Supervisory Service also plans to examine Bank of America Merrill Lynch over how it conducts stock short sales, said the person, who asked not to be identified because they can’t comment on an ongoing probe. Morgan Stanley was picked due to the New York-based bank’s big influence in the market, the person said.

A Morgan Stanley spokesperson declined to ...