Morgan Stanley's investment banking business in Budapest affected by US investigation

The report, citing sources familiar with the matter, said that a former employee contacted Finra as a whistleblower, accusing the investment bankers involved in the project of lacking proper licenses and alleging that the bank violated rules designed to protect clients' confidential information and prevent improper handling of transactions. The report added that two years ago, the bank recruited these bankers from across Europe as part of a plan to transfer jobs overseas and hire cheaper labor. According to the report, the investigation is still in its early stages. Finra is examining what kind of work the bankers in Budapest were engaged in, the extent of their contact with clients, and what level of supervision they were under. Morgan Stanley did not immediately respond to a request for comment outside normal business hours. Finra declined to comment.