According to the Wall Street Journal, Kamal Ahmed is alleged to have leaked insider information which was subsequently shared with Raj Rajaratnam, founder of the Galleon Group hedge fund and a figure at the centre of what is thought to be the largest insider dealing investigation of its kind.
A trader, believed to be Mr Ahmed, is thought to have leaked information relating to the acquisition of ATI Technologies by Advanced Micro Devices, a regulatory filing has said.
Douglas Tween, lawyer for Mr Ahmed, told the news provider: â[My client] is cooperating with Morgan Stanley in its investigation and we are confident when all the facts are known it will be shown that he did nothing illegal or unethical.â
The unnamed banker is believed to be the first Wall Street executive to be drawn into the investigation.
Meanwhile, Danielle Chiesi, co-defendant with Mr Rajaratnam in the case and a former employee at Bear Stearns, has pleaded guilty to counts of fraud.
By Jim Ottewill