Rand manipulation case: Why Neil Phillips avoided prison, Morgan Stanley was victim

In a surprising twist at the heart of financial intrigue, Neil Phillips, co-founder of Glen Point Capital, has evaded prison despite being convicted of manipulating the South African rand's exchange rate to benefit from a $20 million option with Morgan Stanley. Judge Lewis Liman justified the leniency citing Morgan Stanley's sophistication in the market and Phillips' familial responsibilities. The verdict marks a pivotal moment amidst ongoing scrutiny of Wall Street's dealings. Phillips, once celebrated, now faces a $1 million fine and the collapse of his hedge fund empire.

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By Chris Dolmetsch

The judge who sentenced Glen Point Capital co-founder Neil Phillips to probation instead of prison for manipulating an exchange rate said leniency was warranted in part because the victim in the case was Morgan Stanley.

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