the small size of morgan stanley ’s fine relative to investors ’ losses shows other regulators may struggle to pin much blame on the bank , said erik gordon , a professor at the university of michigan ’s stephen m. ross school of business .
in the monday lawsuit by the national credit union administration is its second against jpmorgan involving losses to credit unions .
the actions add to a growing list of cases the largest u.s. bank is fighting over conduct by bear stearns , which jpmorgan acquired in 2008 .
a jpmorgan spokeswoman declined to comment .
in the past two morgan stanley ’s handling of facebook inc. ’s ( fb ) initial public offering , a deal that cost investors billions of dollars , broke a decade - old pledge to block investment bankers from influencing analysts , according to massachusetts regulators , who fined the bank $ 5 million .
by aruna viswanatha dec 17 ( reuters ) - the u.s. credit union regulator sued jpmorgan securities and bear stearns & co on monday over $ 3.6 billion in mortgage securities the bank .
a senior morgan stanley banker wrote a script that facebook ’s then - treasurer used to update research analysts on the company ’s handling of the deal .
“ they paid a little bit of lunch money as a fine , they ’re not getting disqualified , and they agreed once again to abide by a consent order they agreed to nine years ago , ” gordon said yesterday .
a plunge in facebook ’s stock after it began trading in may has fueled government probes and more than 40 lawsuits , with some investors claiming the social - network company failed to disclose revised forecasts before the ipo .