Morgan Stanley Sued by Ex-Employee Over Margin Call

Bloomberg reports:

Morgan Stanley, the sixth-biggest U.S. bank by assets, was sued over claims it improperly forced a former managing director to liquidate securities in his accounts to pay down a margin loan.

Thomas A. Saunders, in the complaint filed today in New York state Supreme Court, said he worked at Morgan Stanley from 1967 to 1989 and was a client of the bank. According to his complaint, Saunders had two accounts at Morgan Stanley holding shares of the bank, Discover Financial Services and other equities. As of Sept. 16, the accounts were valued at more than $270 million and served as collateral against a $128 million margin loan, he said.