Morgan Stanley, Financial Industry | featured news

Massachusetts' securities regulator fined Morgan Stanley $5 million over its handling of Facebook's IPO, saying investment bankers had "improper influence" over the research analysts covering Facebook.

Citigroup Inc said quarterly profit plunged on a $4.7 billion write-down of its stake in a brokerage operated by Morgan Stanley, but mortgage lending increased and capital markets results rebounded.

Morgan Stanley and Citigroup settled a dispute Tuesday over the value of the brokerage firm Morgan Stanley Smith Barney, which they jointly own.

Morgan Stanley will slash 580 jobs in New York as part of a broader wave of layoffs underway at the bank, according to a public filing.

The results marked a reversal of fortune for Morgan Stanley, which had reported three consecutive quarterly losses.

AP - Morgan Stanley said Wednesday it lost more than $1.2 billion in the second quarter as it took charges to cover continuing losses in its real estate investments and its repayment of government bailout money.