Mass. fines Morgan Stanley over Facebook research

Morgan Stanley, the lead underwriter for Facebook Inc’s initial public offering, will pay a $5 million fine to Massachusetts for violating securities laws governing how investment research can be distributed.

Massachusetts’ top securities regulator, William Galvin, on Monday charged that a top Morgan Stanley banker had improperly coached Facebook on how to disclose sensitive financial information selectively, perpetuating what he calls “an unlevel playing field” between Wall Street and Main Street.

via Mass. fines Morgan Stanley over Facebook research — Reuters