Morgan Stanley faces accusations of cheating EU regulators

In an attempt to comply with the post-Bri9exit rules, EU regulators believe that they were misled into thinking that Morgan Stanley has relocated top executives to Europe in order to comply with the rules in place.

Morgan Stanley has been accused of fabricating a false job title for one of its directors. The banker was appointed executive director in 2021 and given the title “head of loan trading,” although it is said that he was instructed not to use the title frequently.

The banker argued in a German court case that is hearing an appeal of his dismissal from Morgan Stanley that his role involved finding and selling troubled European loans rather than managing a trading desk, which gave him greater control over the bank’s risk profile.

Since Brexit, changes to Germany’s employment laws have made it easier to remove individuals who pose a material danger. As a result, the banker is now more susceptible to termination due to the false job description that has never been used for any practical purpose.

The court dismissed the bank’s claims, holding that actual tasks and competences should determine whether or not a person qualifies as a material risk-taker, rather than only his nominal position. Lawfully speaking, the court declared that “he was no risk-taker.”