Morgan Stanley has agreed to pay a $2 million fine to settle an investigation by Massachusetts securities regulators. The investigation determined that the bank failed to properly monitor stock trades made by First Republic Bank's executive chairman, James Herbert, before the bank's collapse last year. The settlement, which was reported by the Wall Street Journal, indicates that Morgan Stanley neither admitted nor denied wrongdoing. The trades in question involved millions of dollars in stock sales facilitated by Morgan Stanley in the months leading up to First Republic's failure. The consent order was issued by the state regulator.