BANKING & FINANCE - May 31, 1995

Morgan Stanley Settles Derivatives Dispute: British financial regulators fined the investment banking firm more than $380,000 over allegedly unauthorized derivatives trading that resulted in $27 million in losses for five clients. Morgan Stanley has assumed the losses of four of the clients, who claim a Morgan broker in London invested their money without consent in risky derivatives trading during the 1992 European currency crises. Morgan has sued the broker, Burkhard Brauch, for $20 million. Brauch has denied the clients’ charges.