Morgan Stanley faces charges over Greek bank deal

The prosecutor has accused Morgan Stanley of raising its stake in Greece's Alpha Bank while it advised National Bank on plans to acquire its smaller rival.

The prosecutor said Morgan Stanley used privileged information to its advantage and made inaccurate statements to the stock exchange. Both charges are misdemeanors under Greek law. Morgan Stanley had no comment on the matter.

Greece's biggest lender National Bank made an all-share bid in February last year for third-largest lender Alpha Bank, which rejected the move.

Alpha later said Morgan Stanley had increased its holding in the lender to 5.1% from 4.965%, adding that the transaction was unsolicited.

The charges against Morgan Stanley are the outcome of an investigation by prosecutors on whether talks between National Bank and Alpha were leaked for stock market speculation.