Is the world going mad, or is it me? Goldman Sachs and Morgan Stanley recently agreed to pay $40m each to settle allegations about the practices they used in equity capital markets transactions.

The US Securities and Exchange Commission said they were guilty of "attempting to induce certain customers who received allocations of initial public offerings to place purchase orders for additional shares in the aftermarket". Antonia Chion, associate director of the SEC's enforcement division, said: "The case against Morgan Stanley serves as a reminder to underwriters that soliciting customers who have no interest in owning a stock long term to buy in the immediate aftermarket, pushing customers to buy in the aftermarket at higher prices and other attempts to induce aftermarket purchases are not permitted."