Morgan Stanley (NYSE:MS) trader Edward Glenn Hadden’s problems when he was working at Goldman Sachs Group, Inc. (NYSE:GS) could cause problems for Morgan Stanley now. The firm hired Hadden, even though he was put on leave by Goldman Sachs Group, Inc. (NYSE:GS) in 2009 when it conducted an internal investigation into Hadden’s work.
Reuters’ Lauren Tara LaCapra and Emily Flitter report that Goldman Sachs Group, Inc. (NYSE:GS)’s internal investigation began after a 2009 trade that allegedly earned Hadden profits before a new Treasury futures contract was introduced by the CME Group Inc (NASDAQ:CME) early the following year.
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On Monday, ValueWalk covered the latest investigation involving Hadden, which is being handled by regulators at CME Group Inc (NASDAQ:CME). They are investigating a 2008 case that’s separate from the one that was investigated by Goldman Sachs Group, Inc. (NYSE:GS) in 2009. CME Group Inc (NASDAQ:CME) regulators are looking into whether Hadden manipulated the closing price in the treasury futures market by making certain trades in the last hours of the trading day.
Although both Morgan Stanley (NYSE:MS) and Goldman Sachs Group, Inc. (NYSE:GS) learned about CME Group Inc (NASDAQ:CME)’s investigation just recently, sources have told Reuters reporters that Morgan Stanley already knew that Hadden had been the center of an internal investigation while at Goldman Sachs.
Hadden’s attorney said he didn’t do anything wrong in the 2008 trade that’s currently under investigation by the CME Group Inc (NASDAQ:CME). He didn’t have any comments about Goldman Sachs’ investigation that resulted in Hadden being put on paid leave for a time.
Hadden has had a successful track record in the Treasury bond market and interest rate derivatives. Other than these two investigations, he has a clean record. At this point he has not been accused of any wrongdoing.