Morgan Stanley: $12.5M for e-mail "lost" on 9/11

From Reuters (Jonathan Stempel):

Morgan Stanley (MS.N: Quote, Profile , Research) will pay $12.5 million to resolve charges that it failed to produce e-mails in arbitration cases and falsely claimed the e-mails were lost in the Sept. 11, 2001, attacks. The settlement, announced Thursday by the Financial Industry Regulatory Authority, which regulates brokerages, calls for the brokerage firm to pay a $3 million fine and $9.5 million into a fund to compensate several thousand investors who filed arbitration complaints.

It also resolves charges that Morgan Stanley failed to provide other documents to arbitration claimants. The bank will hire an independent consultant to ensure it provides materials to retail brokerage clients in arbitrations. It did not admit wrongdoing.

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