Morgan Stanley, Wells Fargo join list associated with MFS as Barclays faces questions about collapse – The Intermediary

Morgan Stanley lent £50m to an entity linked to Market Financial Solutions (MFS) in 2021.

Morgan Stanley has been revealed to have lent £50m to an entity linked to Market Financial Solutions (MFS) in 2021, helping fund MFS mortgages, according to a report from Reuters.

Meanwhile, according to The Telegraph, Barclays has faced questions due to its actions in the run-up to MFS’ collapse, which some have suggested show that the bank was aware of concerning activity.

Barclays is alleged to have commenced shutting down MFS accounts ahead of the lender’s collapse, reducing its exposure according to reports.

MFS paid off £134m owed to Barclays by refinancing through Wells Fargo, after Barclays started blocking transactions at MFS.

Regulators have opened investigations into MFS and its auditors. 

The Financial Conduct Authority (FCA) launched a probe in March, while the Financial Reporting Council (FRC) announced an investigation into a group of auditors involved with MFS earlier this month.

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The Intermediary reached out to Morgan Stanley, Barclays, and MFS administrators AlixPartners for comment.