WSJ looks at Morgan Stanley's September stock troubles

An investigation into Morgan Stanley rumors continues; luxury good sellers pulling back; China not so keen on Guns N' Roses' album; and more.

The Wall Street Journal analyzed trading records and other activity to find the people behind September rumors on Morgan Stanley's financial health. New York Attorney General Andrew Cuomo, the US Attorney's Office, and the Securities and Exchange Commission are investigating whether traders spread false rumors that led to fears about the stability of Morgan Stanley in September.

As Lehman Brothers filed for bankruptcy on September 14, traders worried which firm would be next to fall. False rumors about Morgan Stanley, which said it faced risks tied to American International Group (AIG) and Deutsche Bank had pulled its $25 billion credit line, led to tumult in the days that followed.

Morgan Stanley released its earnings a day early and tried to reassure investors on a conference call in response. CEO John Mack sent a memo to employees to let them know that he would be speaking with regulators.


Also:

The recession hits luxury good purveyors, adding to the problems facing media outlets that depend on them for ad revenues. However, events, such as launch parties, are still quietly taking place.

A Chinese media outlet published by the ruling government calls the long-awaited Guns N' Roses album, Chinese Democracy, an attack on China.

The Screen Actors Guild is calling upon its members to authorize a strike after weekend talks with Hollywood studios fell apart. The studios sought the right to create new media content with non-union actors.

The Washington Post's Howard Kurtz writes about current White House press secretary Dana Perino and her relationship with the media.

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