Three news to start your week: January 15
Morgan Stanley to pay $249 million for leaking confidential client information
(W Radio)
The US firm Morgan Stanley will pay $249 million to the country's authorities for leaking confidential information on the stock sales of some of its clients after reaching a settlement with the US Securities and Exchange Commission (SEC) and the US Attorney's Office for the Southern District of New York.
"The sellers entrusted non-public information to Morgan Stanley (...) expecting that they would keep it confidential," SEC Chairman Gary Gensler said in a statement.
Specifically, the authorities accused the firm and one of its former managers, Pawan Passi, of leaking data on private sales of large quantities of shares (known as 'block trades') to reduce the risk of their purchases.
Crypto firm Genesis Global Trading to pay $8 million for compliance failings
(The Wall Street Journal)
Genesis Global Trading, a cryptocurrency brokerage, has reached a settlement with the financial regulator of New York State for $8 million, alleging deficiencies in its cybersecurity and anti-money laundering programs.
The US spot crypto trading operations of Genesis Global Trading, a division of the now-bankrupt Genesis Global Holdco LLC, were shut down in September, and the company is currently winding down. As part of its settlement with the New York State Department of Financial Services, the trading unit will surrender its BitLicense, which allowed it to operate a crypto business in New York.
A representative for the regulatory body further stated that companies holding licenses in the state are obligated to safeguard the integrity of the financial system and customers, and permitting a company to close its doors to avoid penalties for infractions may encourage other companies to disregard their responsibilities.
Former top Ecuador Oil official says Trafigura paid him bribes
(Bloomberg)
As a comprehensive investigation into corruption in the global oil trade unfolds in a New York trial, the former head of international trade at Ecuador's state oil company testified that he had been bought off by three of the biggest commodity trading companies in the world.
The first public accusation of Trafigura Group, the second-largest independent oil trader in the world, in the Ecuadorian corruption scheme comes from Nilsen Arias, who worked as Petroecuador's international trade manager until the middle of 2017.
The largest oil trader in the world, Vitol Group, acknowledged in 2020 that it had bought government officials for over ten years in three countries, including Ecuador. Meanwhile, rival Gunvor Group revealed that it was the subject of a US investigation regarding bribery in Ecuador and recorded a $650 million provision.
