From NY Times' Dealbook: Over objections from consumer groups and New York officials,
a federal judge on Tuesday approved a $4.8 million settlement between the
Justice Department and Morgan Stanley over accusations of price fixing in the
electricity market.
Yet even as he signed off on the settlement, Judge William
H. Pauley III of Federal District Court in Manhattan expressed “misgivings”
about the deal, saying the dollar amount was too low.
“Given the government’s stark allegations of manipulative
conduct against Morgan Stanley, disgorgement of $4.8 million is a relatively
mild sanction,” Judge Pauley wrote. “There is a risk that a large financial
services firm like Morgan Stanley could view such a modest penalty as merely
the cost of doing business.”
The judge
said he agreed to the settlement out of deference to government’s arm’s-length
negotiations with Morgan Stanley…
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