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Morgan Stanley trader under investigation

Dec. 3, 2012 at 3:58 PM   |   Comments

NEW YORK, Dec. 3 (UPI) -- A regulatory filing says CME Group is investigating trading done by Glenn Hadden, the head of Morgan Stanley's global interest rate desk.

Hadden is a star in the world of financial trading. The New York Times reported Monday that Hadden, in a good year, pockets $10 million or more in personal earnings.

At Goldman Sachs, his previous employer, Hadden was made a partner, which implies he made copious amounts of profit for the firm on his trades, the newspaper said.

But he also ran into trouble at Goldman Sachs, which put him on a paid leave of absence in 2009 after complaints surfaced involving his trying to profit from the New York Federal Reserve's bond-buying program -- a program designed to boost the economic recovery.

He left Goldman in 2010 and quickly found work at Morgan Stanley.

However, CME Group -- the owners of the Chicago Mercantile Exchange and the Chicago Board of Trade -- is investigating whether or not Hadden manipulated the treasury securities market by making purchase late in the day that changed the closing price, which would, in turn, enhance the profits on some of his other deals.

The current investigation has the possibility of becoming an escalating controversy, given several Morgan Stanley executives knew of his trouble at Goldman Sachs before they hired him.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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