The Financial Crisis Hasn't Ended At The SEC

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Or at the Justice Department or CFTC or FCA or SFO.

Two big banks, Morgan Stanley and Bank of America Corp., on Tuesday disclosed details of the continuing regulatory and legal challenges they face for their actions during the crisis….

Morgan Stanley announced that it reached a preliminary agreement to pay $275 million to settle the Securities and Exchange Commission's allegations that the firm misled investors in mortgage bonds that collapsed….

Bank of America, meanwhile, said new international and federal investigations have been launched into its foreign-exchange and mortgage practices, respectively, in its own regulatory filing....

Legal costs remain a growing burden for the nation's biggest banks, even though investors have largely looked through the recent settlements in hopes that they are a sign that the worst is over for the banks' shareholders. "The spate of lawsuits [against the banks] will last for some time," said Amit Seru, a professor at the University of Chicago's Booth School of Business. "We are talking about [issues from] 2007 and we're seven years down."

Banks' Legal Bills Linked to Crisis Linger [WSJ]

Related

At Height Of Financial Crisis, One Morgan Stanley Employee Stood Up For Her Rights

Specifically, her rights to Perrier on the company dime. It's unclear what this woman's name is so moving forward she'll simply be referred to as The One With Brass Balls And A Dislike Of Tap. The daily Seamless stipend is considered sacred for employees, and any abuse of the system appears generally overlooked by higher-ups. When Lehman Brothers went under, for instance, Morgan Stanley lowered the Seamless limit from $30 to $25, much to the anger of workers. "People went nuts," recalls a former employee. "Every so often there were these fireside chats with [Morgan Stanley CEO] John Mack 'Da Knife' and a collection of analysts. One of the women on the call asked Mack to raise the limit to $30 again. Mack, not really having paid much attention to expenses, was surprised to hear it had been reduced. Concerned, he asked her why she needed $30 instead of just $25. She said that with the new reduction, 'I can't order my Perrier anymore.'" The next day, as legend has it, there was an entire case of Perrier on her desk--courtesy of John Mack. In related news, the Morgan Stanley Seamless stipend is currently at $20. And while filing formal complaints at the top might have worked when MS was a free-for-all orgy of sparkling water and Italian pastries and whatever else your heart desired,** anyone considering pleading his/her case to James Gorman re: why this just won't do should also think about boxing their shit up first, lest a hasty exit be necessary. How Wall Street Bankers Use Seamless To Feast On Free Lobster, Steak, And Beer [Fast Company] **Particularly if what your heart desired was a pair of fierce as fuck shoes.