French watchdog fines Morgan Stanley for bond price manipulation

A sign is displayed on the Morgan Stanley building in New York US, July 16, 2018. —Reuters pic
A sign is displayed on the Morgan Stanley building in New York US, July 16, 2018. —Reuters pic

PARIS, Dec 10 — France’s financial markets regulator said today it had fined US bank Morgan Stanley €20 million (US$22 million) for market manipulation at the height of the Greek debt crisis.

The Autorite des Marches Financieres said the lender had manipulated French and Belgian bond prices in June 2015 with the aim of causing an “abnormal and artificial rise” in sovereign bond prices and re-selling them for a profit.

It said the bank bought up massive amounts of futures for French and German bonds on June 16, 2015 in 15 minutes.

Morgan Stanley has denied manipulating markets. It termed the fine “disproportionate” and “unreasonable” and said it would appeal. — AFP

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