Morgan Stanley fined over trader

The FSA praised Morgan Stanley's cooperation

Morgan Stanley has been fined £1.4m ($2m) by the UK financial watchdog for failing to prevent a rogue trader from building up £79m of losses.

The London trader in question, Matthew Piper, was found to have deliberately mispriced trades in the credit markets.

The Financial Services Authority (FSA) said Mr Piper had been fined £105,000 and banned from conducting any work that was covered by its regulations.

Morgan Stanley announced in June of last year that it had found the losses.

'Behind us'

The FSA said the US investment bank had "failed to use the controls it had in place".

However, the watchdog said that once the rogue trading had been discovered, Morgan Stanley cooperated fully with the FSA.

Mr Piper was dismissed by Morgan Stanley in September.

The bank said it now considered "this matter to be behind us".