We noted in our write up about Morgan Stanley's earnings that a trader lost $120 million due to trades that "did not comply with Firm policies." Since then, Morgan Stanley said it suspended a trader in London, but beyond that it was mum. The New York Times asks: How long had the trader had been mismarking his book? And what he was trading? It's true that the rogue was caught before the losses could really mount. So the glass is either half full or half empty from a compliance and risk perspective. In addition, Morgan Stanley said in its conference call that the firm's big loss in commodities trading was due largely to bad bets on electricity prices. That raises some issues as well about hedging and whether the position was too large.  

For more:
- here's the New York Times item

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