Morgan Stanley Earlier this year the Wall Street Journal reported that "U.S. prosecutors are investigating whether Morgan Stanley misled investors about mortgage-derivatives deals it helped design and sometimes bet against." The firm's also being sued by US Bank for fraudulently misleading it and other investors over a structured residential investment called "Tourmaline." A group of investors in Singapore is suing the firm for designing CDOs to fail and then selling them as "conservative investments." The Financial Industry Regulatory Authority fined Morgan Stanley this year for failing to disclose material conflicts of interest to investors. The same agency hit the firm with a $12.5 million fine in 2007 for illegally concealing emails during customer arbitration hearings. In a particularly sleazy move, Morgan Stanley claimed that the emails had been lost on 9/11, when they were all safely stored in backup copies elsewhere. MS was also sued by the EEOC for gender discrimination.