Morgan Stanley's £1.4m fine for credit mismark

The UK Financial Services Authority has fined Morgan Stanley £1.4 million for failing to supervise one of its prop traders, allowing him to mismark a portfolio of illiquid credit products by $120 million last year.

The bank discovered in May 2008 that Matthew Piper, a credit trader on the bank's prop trading team, had failed to mark down his portfolio of credit derivatives, reportedly options on the Markit CDX credit index.

Piper's books were not independently supervised, the FSA said. In

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