Posted August 19th, 2016.
Select Financial Sector SPDRs (XLF) was down 0.2%. Direxion Daily Financial Bull 3X shares (FAS) was down 0.8% while its bearish counterpart, FAZ, was up 0.7%.
Morgan Stanley (MS) and its board were accused of mismanaging the firm’s 401(k) retirement plan and costing 60,000 employees hundreds of millions of dollars by picking inappropriate and high-priced investments, some of which were managed for the firm’s own profit, according to a report from Bloomberg Friday. The lawsuit, filed Friday in Manhattan federal court, highlights a friction that exists at financial-services firms that put employees into their own product, the report pointed out. The suit cited several Morgan Stanley mutual funds included in the 401(k) that fared worse than offerings from rivals, according to the news report. MS shares were up 0.3%.