Regulators Are Taking Morgan Stanley and Hedge Funds to Court

Regulators take Morgan Stanley and hedge funds to court - Subpoenas
Regulators take Morgan Stanley and hedge funds to court – Subpoenas

Regulators are taking banks such as Morgan Stanley and multiple hedge funds to court.

Financial institutions have been receiving subpoenas ordering them to court after several investigations, more on that below.

Retail investors have been demanding the SEC and Justice Department take action for decades now.

Will this new wave of retail investors be the ones to spark change in the markets?

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Welcome to Franknez.com – today’s market news is surrounding the crackdown of banks and hedge funds. Be sure to stick around and join the discussion in the comment section of the blog below.

Let’s dive right into it!

Regulators are taking financial institutions to court.

I will be updating this article as new information arises so be sure to join the newsletter to get notified.

Some of the biggest banks and hedge funds are getting dragged to court.

And while not all of the information is known yet, here’s what we do know.

Morgan Stanley & Goldman Sachs get subpoenas

Morgan Stanley and Goldman Sachs get subpoenaed
Morgan Stanley and Goldman Sachs get subpoenaed

Regulators are investigating communications between banks and hedge funds.

Morgan Stanley, based in New York is among the many firms reported to have received subpoenas.

Another bank you might recognize off the top is Goldman Sachs who’s already been known for notoriously manipulating commodities.

Morgan Stanley is one of the banks that funded private family office Archegos.

The bank lost billions of dollars when the private hedge fund defaulted last year.

Now these banks are receiving subpoenas; a court order to come to court.

Subpoenas may be used in both criminal and civil cases but often result in jail time or heavy fines if ignored.

Why are hedge funds and banks going to court?

Regulators are examining whether bankers might have improperly tipped hedge fund clients in advance of large share sales.

The report also says regulators are investigating whether banks also alerted favored clients ahead of public disclosures of trades, and if such information benefited the fund.

The Department of Justice is also investigating the matter.

We’ve seen this type of strategy play out in the past with GameStop and AMC early last year.

Insiders communicated about halting retail trades as they sold off their entire AMC and GameStop positions.

Meanwhile, retail investors were left helpless unable to buy the assets.

Further price surges from ‘meme stocks’ would have resulted in catastrophic losses for hedge funds and banks alike.

These events have yet to receive justice.

BREAKING: Citadel Under Investigation by Department of Justice

What will be the result?

Leave your thoughts below in the comment section of the blog.

I noticed mixed opinions on Twitter.

Some of you say the SEC and DOJ are finally taking action, others say they’re part of the problem too.

Let’s spark a discussion below.

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13 Comments

  1. Bobbijo Lopez

    How many subpoena went out to one Bank?
    They should be great full that they are getting an invite to court. Most people don’t get an invite to go to court (certified letter), and they go to jail anyways.
    Some one is responsible for said accounts. Call Book Keeping at the bank and find out who handles the said accounts.
    This is not legal advice!

    • Frank Nez

      So far, the known banks are Morgan Stanley and Goldman Sachs.

  2. Tracy

    I hope something is done about the manipulation, we want a fair market for everyone.

  3. G Matthew (Matt) Allen

    Regrettably, I don’t trust any of it. I don’t trust government regulators, I don’t trust the government and I don’t trust that Apes will make any money. But I’m still in…… I want them to squirm more than anything.

    • Frank Nez

      I believe the ape community is going to make a lot of money, regulators are iffy, too much corruption. Curious to see how this plays out.

      • Skeeter

        I believe so only because this haS become so visible they will try to wiggle out but this time it seems that they will pay.

        • Frank Nez

          I agree!

      • Harley

        Yes! The SEC, has been part of the problem. However they have the chance to right their wrongs, by putting ALL of these white collar criminals in prison, and forcing ALL short positions closed. And maybe, just maybe people will begin to come back to the market.

        • Frank Nez

          As long as we continue to raise awareness, retail will win. Thanks for your comment, Harley.

  4. Frank Nez

    Let’s start a discussion!

    • Howard Nelson

      It appears “pressure” is on SEC etc to do something about all the manipulation in the market
      However let’s also get to the margin calls and naked shares etc. I’m holding and buying AMC on the dips but want to know what is my stock worth. Not interested in a synthetic amount.
      Hanging in with all my fellow Apes. We’re going to win long as we hold. Good luck to you all.

      • Aq

        theres another frank nez article that says amc stock worth in the high hundreds excluding synthetics

    • Bobbijo Lopez

      About what issue?

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