Morgan Stanley to Pay $249 Million to End Block Trade Probes (2)

Morgan Stanleyagreed to pay $249 million to the Justice Department and Securities and Exchange Commission to end a yearslong US investigation into block trading that rattled the industry.

A nonprosecution agreement with federal prosecutors in Manhattan allows the bank to avoid criminal charges. Its former senior-ranking equities executive Pawan Passi, who was placed on leave and later left the bank after the probe intensified, has entered into a deferred-prosecution agreement over his handling of confidential information.

As part of the total, Morgan Stanley will pay about $113 million to the SEC, the regulator announced Friday.

Pawan Passi, right, exits court in New York on Friday.

Photographer: Alex Kent/Bloomberg

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