Morgan Stanley Drops on Report of US Probes Into Wealth Unit (2)

Morgan Stanley shares fell the most in five months after a report that a cadre of US regulators are scrutinizing the firm’s efforts to prevent potential money laundering by wealthy clients.

The Securities and Exchange Commission, the Office of the Comptroller of the Currency and other Treasury Department offices are digging into whether the New York-based bank has done enough to investigate the identities of risky clients, the Wall Street Journal wrote, citing unidentified people familiar with the matter. The Federal Reserve was already known to be looking into those controls last year.

WATCH: Bloomberg Intelligence’s Elliott Stein comments on the report of US probes into Morgan Stanley’s Wealth Unit.

Source: Bloomberg

The stock fell 5.3% to ...