Investment giant faces disciplinary proceedings

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Monday, July 14, 2003 | 9:44 a.m.

BOSTON -- Officials from New York and Massachusetts said today that an enforcement action is pending against Morgan Stanley over the Wall Street firm's mutual fund sales practices.

Massachusetts Secretary of the Commonwealth William Galvin, New York Attorney General Eliot Spitzer and Rep. Barney Frank, D.-Mass., were to announce details this afternoon in Boston.

On Friday, Morgan Stanley confirmed in a regulatory filing that federal regulators have opened an investigation of its mutual fund sales practices, and subpoenaed its top managers in connection with an ongoing probe of stock-research conflicts.