Morgan Stanley Faces Fed Fine: Hot Trends
NEW YORK (TheStreet) -- Popular searches on the Internet Wednesday include Morgan Stanley(MS) as the Federal Reserve plans to fine the company for misconduct and negligence in how the investment bank handled foreclosures.
The action focuses on Saxon Mortgage Services, a former unit of Morgan Stanley, and its behavior between 2009 and 2010. The Fed alleges that Saxon employees filed numerous foreclosure documents without verifying them and that they also used mortgage documents in court that hadn't been properly notarized. The Fed also said Saxon didn't designate enough resources to accommodate homeowners' needs for mortgage relief.
The Fed hasn't disclosed the amount of the fine against Morgan Stanley. It ordered the company to review thousands of foreclosures and reimburse homeowners who had been forced out of their homes improperly as well.
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Yahoo!(YHOO) is trending as the Internet company plans to cut up to 2,000 jobs, nearly one-seventh of its work force.
The company reportedly plans to announce the cuts as early as Wednesday. It's speculated that the cuts will mostly take place within Yahoo!'s product division, in an effort to shift the company away from marketing to advertising. The cuts will be made across the country, though it has been reported that the company may bring in new employees in the coming months.
Yahoo! employs more than 13,000 people in 25 countries. The company has faced declining revenue and increasing competition from Google(GOOG) and Facebook.
SanDisk(SNDK) is another popular search after the flash memory card-maker cut its first-quarter profit and sales guidance.
SanDisk cited weaker-than-expected pricing and lower demand for its revised forecast. SanDisk said it expects revenue of approximately $1.2 billion, compared to its previous forecast of $1.3 billion to $1.35 billion. The company also expects that its gross margin will miss its previous forecast of 39% to 42%.
In January, SanDisk revealed its concerns that weaker demand would impact sales for the first half of this year and forecast lower-than-expected first-quarter revenue.
SanDisk will announce its first-quarter financial results on April 19.
