Morgan Stanley

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City. With offices in more than 42 countries and more than 60,000 employees, the firm's clients include corporations, governments, institutions, and individuals.[2] Morgan Stanley ranked No. 67 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[4]

Morgan Stanley
Public
Traded asNYSE: MS
S&P 100 Component
S&P 500 Component
ISINUS6174464486 
IndustryFinancial services
Founded1935 (The original Morgan Stanley)

1924 (Dean Witter & Co.)

1931 (Reynolds Securities)
FounderHenry Sturgis Morgan
Harold Stanley
Dean G. Witter
Richard S. Reynolds, Jr.
HeadquartersMorgan Stanley Building
New York City, New York, U.S.
Area served
International service
Key people
James P. Gorman
(Chairman & CEO)
Thomas Nides
(Vice Chairman)
Jonathan Pruzan
(CFO)
ProductsInvestment banking, Sales and trading, Commodities, Prime brokerage, Wealth management, Investment management
Revenue $41.419 billion (2019)
$11.301 billion (2019)
$ 9.237 billion (2019)
AUM $552 billion (2019)
Total assets $895.429 billion (2019)
Total equity $82.697 billion (2019)
OwnerMUFG (24.0%) [1]
Number of employees
60,431 (2019)
Capital ratio16.4% (FY 2019)
Websitewww.morganstanley.com
Footnotes / references
[2][3]

The original Morgan Stanley, formed by J.P. Morgan & Co. partners Henry Sturgis Morgan (grandson of J.P. Morgan), Harold Stanley, and others, came into existence on September 16, 1935, in response to the Glass–Steagall Act that required the splitting of commercial and investment banking businesses.[5] In its first year, the company operated with a 24% market share (US$1.1 billion) in public offerings and private placements.

The current Morgan Stanley is the result of merger of the original Morgan Stanley with Dean Witter Discover & Co. in 1997.[5] Dean Witter's Chairman and CEO, Philip J. Purcell, became the Chairman and CEO of the newly merged "Morgan Stanley Dean Witter Discover & Co." [6][7] The new firm changed its name back to "Morgan Stanley" in 2001.[8][9][10] The main areas of business for the firm today are institutional securities, wealth management and investment management.

Overview

Morgan Stanley is a financial services corporation that, through its affiliates and subsidiaries, advises, and originates, trades, manages, and distributes capital for institutions, governments, and individuals. The company operates in three business segments: Institutional Securities, Wealth Management, and Investment Management.[2]

Morgan Stanley's office on Times Square

History
See also: JPMorgan Chase and J.P. Morgan & Co.

The original Morgan Stanley (1935–1997)

Morgan Stanley traces its roots to J.P. Morgan & Co. Following the Glass–Steagall Act, it was no longer possible for a corporation to have investment banking and commercial banking businesses under a single holding entity.[11][12] J.P. Morgan & Co. chose the commercial banking business over the investment banking business. As a result, some of the employees of J.P. Morgan & Co., most notably Henry S. Morgan and Harold Stanley, left J.P. Morgan & Co. and joined others from the Drexel partners to form Morgan Stanley.[12] The firm formally opened the doors for business on September 16, 1935, at 2 Wall Street, New York City, just down the street from J.P Morgan.[13] The firm was involved with the distribution of 1938 US$100 million of debentures for the United States Steel Corporation as the lead underwriter.[14] The firm also obtained the distinction of being the lead syndicate in the 1939 U.S. rail financing. The firm went through a reorganization in 1941 to allow for more activity in its securities business.

The firm was led by Perry Hall, the last founder to lead Morgan Stanley, from 1951 until 1961.[15] During this period, the firm co-managed the World Bank's triple-A-rated bonds offering of 1952,[16] as well as coming up with General Motors' US$300 million debt issue, US$231 million IBM stock offering, and the US$250 million AT&T's debt offering.

Morgan Stanley credits itself with having created the first viable computer model for financial analysis in 1962, thereby starting a new trend in the field of financial analysis. Future president and chairman Dick Fisher contributed to the computer model as a young employee, learning the FORTRAN and COBOL programming languages at IBM.[17] In 1967, it established the Morgan & Cie, International in Paris in an attempt to enter the European securities market.[18] The firm acquired Brooks, Harvey & Co., Inc. in 1967 and established a presence in the real estate business.[19] The sales and trading business is believed to be the brainchild of Bob Baldwin.[20]

In 1996, Morgan Stanley acquired Van Kampen American Capital.[21]

Morgan Stanley after the Merger (1997–present)
Current Morgan Stanley Logo 2013
Historical logo used by Morgan Stanley in the early 2000s

On February 5, 1997 the company merged with Dean Witter Discover & Co., the spun-off financial services business of Sears Roebuck.[22] Dean Witter's Chairman and CEO, Philip J. Purcell, continued to hold the same roles in the newly merged "Morgan Stanley Dean Witter Discover & Co." Morgan Stanley’s president John J. Mack became the firm’s president and chief operating officer.[23] In 1998, the name of the firm was changed to "Morgan Stanley Dean Witter & Co."[24] Originally, the name was chosen to be the combination of the two predecessor companies in order to avoid tension between the two firms.[9] Eventually in 2001 "Dean Witter" was further dropped and the name became "Morgan Stanley" for unrevealed reasons.[9][10]

Morgan Stanley had offices located on 24 floors across buildings 2 and 5 of the World Trade Center in New York City. These offices had been inherited from Dean Witter which had occupied the space since the mid-1980s. The firm lost 13 employees during the September 11 attacks in 2001[25] (Thomas F. Swift, Wesley Mercer, Jennifer de Jesus, Joseph DiPilato, Nolbert Salomon, Godwin Forde, Steve R. Strauss, Lindsay C. Herkness, Albert Joseph, Jorge Velazquez, Titus Davidson, Charles Laurencin and Security Director Rick Rescorla) in the towers, while 2,687 were successfully evacuated by Rick Rescorla.[26][27] The surviving employees moved to temporary headquarters in the vicinity. In 2005 Morgan Stanley moved 2,300 of its employees back to lower Manhattan, at that time the largest such move.[28]

In 2003, NewYork–Presbyterian Hospital named the Morgan Stanley Children's Hospital in recognition of the firm's sponsorship of the hospital, which largely funded its construction through philanthropy.[29] The initiative began under CEO Philip J. Purcell and was completed under John Mack. Employees at the firm have been involved with the hospital since the 1990s and personally donated to the construction of the current child-friendly building, which opened in November 2003.[30][31]

The company found itself in the midst of a management crisis starting in March 2005[32] that resulted in a loss of the firm's staff.[33] Purcell resigned as CEO of Morgan Stanley in June 2005 when a highly public campaign by former Morgan Stanley partners[34][35] threatened to damage the firm and challenged his refusal to aggressively increase leverage, increase risk, enter the sub-prime mortgage business and make expensive acquisitions; the same strategies that forced Morgan Stanley into massive write-downs, related to the subprime mortgage crisis, by 2007.[36]

On December 19, 2006, Morgan Stanley announced the spin-off of its Discover Card unit.[37] The bank completed the spinoff of Discover Financial on June 30, 2007.

In order to cope with the write-downs during the subprime mortgage crisis, Morgan Stanley announced on December 19, 2007 that it would receive a US$5 billion capital infusion from the China Investment Corporation in exchange for securities that would be convertible to 9.9% of its shares in 2010.[38][39]

The bank's Process Driven Trading unit was amongst several on Wall Street caught in a short squeeze, reportedly losing nearly $300 million in one day. The bubble's subsequent collapse was considered to be a central feature of the financial crisis of 2007–2010.[40]

The bank was contracted by the United States Treasury in August 2008 to advise the government on potential rescue strategies for Fannie Mae and Freddie Mac.[41] Within days, Morgan Stanley itself was at risk of failure, with rapidly changing prospects, regulatory model and ownership stakes over the course of four weeks from mid-September to mid-October 2008.

To set the context: Morgan Stanley is said to have lost over 80% of its market value between 2007 and 2008 during the financial crisis.[42] On September 17, 2008, the British evening-news analysis program Newsnight reported that Morgan Stanley was facing difficulties after a 42% slide in its share price in two days. CEO John J. Mack wrote in a memo to staff "we're in the midst of a market controlled by fear and rumours and short-sellers are driving our stock down." By September 19, 2008, the share price had slid 57% in four days, and the company was said to have explored merger possibilities with CITIC, Wachovia, HSBC, Standard Chartered, Banco Santander and Nomura.[43] At one point, Hank Paulson offered Morgan Stanley to JPMorgan Chase at no cost, but JPMorgan's Jamie Dimon refused the offer.[44]

Morgan Stanley and Goldman Sachs, the last two major investment banks in the US, both announced on September 22, 2008, that they would become traditional bank holding companies regulated by the Federal Reserve.[45] The Federal Reserve's approval of their bid to become banks ended the ascendancy of securities firms, 75 years after Congress separated them from deposit-taking lenders, and capped weeks of chaos that sent Lehman Brothers Holdings Inc. into bankruptcy and led to the rushed sale of Merrill Lynch & Co. to Bank of America Corp.[46]

Mitsubishi UFJ Financial Group, Japan's largest bank, invested $9 billion in a direct purchase of a 21% ownership stake in Morgan Stanley on September 29, 2008.[47] This may have been the largest check ever written.[48] Concerns over the completion of the Mitsubishi deal during the October 2008 stock market volatility caused a dramatic fall in Morgan Stanley's stock price to levels last seen in 1994. It recovered once Mitsubishi UFJ's 21% stake in Morgan Stanley was completed on October 14, 2008.[49][50][51][52]

Morgan Stanley borrowed $107.3 billion from the Fed during the 2008 crisis, the most of any bank, according to data compiled by Bloomberg News Service and published August 22, 2011.[53]

In 2009, Morgan Stanley purchased Smith Barney from Citigroup and the new broker-dealer operates under the name Morgan Stanley Smith Barney, the largest wealth management business in the world.

In November 2013, Morgan Stanley announced that it would invest $1 billion to help improve affordable housing as part of a wider push to encourage investment in efforts that aid economic, social and environmental sustainability.[54]

In July 2014, Morgan Stanley's Asian private equity arm announced it had raised around $1.7 billion for its fourth fund in the area.[55]

In December 2015, it was reported that Morgan Stanley would be cutting around 25 percent of its fixed income jobs before month end.[56] In January 2016, the company reported that it had offices in more than 43 countries.[57]

On February 20, 2020, Morgan Stanley announced that it would purchase E-Trade for about $13 billion.[58]

Organization

Morgan Stanley splits its businesses into three business units. As listed below:

Institutional Securities Group

Morgan Stanley's Institutional Securities has been the most profitable business segment[59] for Morgan Stanley in recent times. This business segment provides institutions with services such as capital raising and financial advisory services including mergers and acquisitions advisory, restructurings, real estate and project finance, and corporate lending. The segment also encompasses the Equities and the Fixed Income divisions of the firm; trading is anticipated to maintain its position as the "engine room" of the company.[60] Among the major U.S. banks, Morgan Stanley sources the highest portion of revenues from fixed income underwriting which was reported at 6.0% of total revenue in FY12.[61]

Wealth Management

The Global Wealth Management Group provides stockbrokerage and investment advisory services. As of 2014 Q2 this segment had reported an annual increase of 21 percent in pre-tax income.[59] This segment provides financial and wealth planning services to its clients, who are primarily high-net-worth individuals.

On January 13, 2009, the Global Wealth Management Group was merged with Citi's Smith Barney to form the joint venture Morgan Stanley Smith Barney. Morgan Stanley holds 51% of the entity, and Citi holds 49%.[62] As of May 31, 2012, Morgan Stanley planned to purchase an additional 14% of the joint venture from Citi.[63] In June 2013, Morgan Stanley stated it had secured all regulatory approvals to buy Citigroup's remaining 35% stake in Smith Barney and would proceed to finalize the deal.[64]

Investment Management

Investment Management provides asset management products and services in equity, fixed income, alternative investments, real estate investment, and private equity to institutional and retail clients through third-party retail distribution channels, intermediaries and Morgan Stanley's institutional distribution channel. Morgan Stanley's asset management activities were principally conducted under the Morgan Stanley and Van Kampen brands until 2009.

On October 19, 2009, Morgan Stanley announced that it would sell Van Kampen to Invesco for $1.5 billion, but would retain the Morgan Stanley brand.[65] It provides asset management products and services to institutional investors worldwide, including pension plans, corporations, private funds, non-profit organizations, foundations, endowments, governmental agencies, insurance companies and banks.

On September 29, 2013, Morgan Stanley announced a partnership with Longchamp Asset Management, a French-based asset manager that specializes in the distribution of UCITS hedge funds, and La Française AM, a multi-specialist asset manager with a 10-year track record in alternative investments.[66]

Awards and honors
  • Morgan Stanley was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.[67]
  • Family Digest magazine named Morgan Stanley one of the "Best Companies for African Americans" in June 2004.
  • Essence magazine named Morgan Stanley as one of the "30 Great Places to Work" in May 2004
  • Asian Enterprise magazine named Morgan Stanley as one of the "Top Companies for Asian Americans" in April 2004.
  • Hispanic magazine selected Morgan Stanley as one of the "100 Companies Providing the Most Opportunities to Hispanics" in February 2004.
  • Morgan Stanley is listed in The Times Top 100 Graduate Employers, only recently dropping out of the top 40
  • The Times listed Morgan Stanley 5th in its 20 Best Big Companies to Work For 2006.[68]
  • Great Place to Work Institute Japan in 2007 ranked Morgan Stanley as the second best corporation to work in Japan, based on the opinions of the employees and the corporate culture.[69]

Controversies and lawsuits

2003

In 2003, Morgan Stanley agreed to pay $125 million to settle its portion of a $1.4 billion settlement of a suit brought by Eliot Spitzer, the Attorney General of New York, the National Association of Securities Dealers (now the Financial Industry Regulatory Authority (FINRA), the United States Securities and Exchange Commission (SEC), and a number of state securities regulators, relating to intentionally misleading research motivated by a desire to win investment banking business with the companies covered.[70]

2004

In June 2004, the New York Stock Exchange (NYSE) imposed a penalty of a censure and $140,000 fine for incorrectly using customers' margined securities as collateral for cash management loans.[71]

In 2004, Morgan Stanley settled a sex discrimination suit brought by the Equal Employment Opportunity Commission for $54 million.[72] In 2007, the firm agreed to pay $46 million to settle a class action lawsuit brought by eight female brokers.[73]

In July 2004, the firm paid NASD a $2.2 million fine for more than 1,800 late disclosures of reportable information about its brokers.[74]

In September 2004, the firm paid a $19 million fine imposed by NYSE for failure to deliver prospectuses to customers in registered offerings, inaccurate reporting of certain program trading information, short sale violations, failures to fingerprint new employees and failure to timely file exchange forms.[75]

In December 2004, the firm paid a $100,000 fine to NASD and $211,510 in restitution to customers for failure to make proper disclosures to municipal bond investors. In the course of NASD's investigation, Morgan Stanley's failure to make a timely response to requests for information resulted in censure and an additional $25,000 fine.[76]

2005

The New York Stock Exchange imposed a $19 million fine on January 12, 2005, for alleged regulatory and supervisory lapses. At the time, it was the largest fine ever imposed by the NYSE.[77]

On May 16, 2005, a Florida jury found that Morgan Stanley failed to give adequate information to Ronald Perelman about Sunbeam thereby defrauding him and causing damages to him of $604 million. In addition, punitive damages were added for total damages of $1.450 billion. This verdict was directed by the judge as a sanction against Morgan Stanley after the firm's attorneys infuriated the court by failing and refusing to produce documents, and falsely telling the court that certain documents did not exist.[78] The ruling was overturned on March 21, 2007 and Morgan Stanley was no longer required to pay the $1.57 billion verdict.[79]

2006

Morgan Stanley settled a class-action lawsuit on March 2, 2006. It had been filed in California by both current and former Morgan Stanley employees for unfair labor practices instituted to those in the financial advisor training program. Employees of the program had claimed the firm expected trainees to clock overtime hours without additional pay and handle various administrative expenses as a result of their expected duties. A $42.5 million settlement was reached and Morgan Stanley admitted no fault.[80]

In May the firm agreed to pay a $15 million fine. The Securities and Exchange Commission accused the firm of deleting emails and failing to cooperate with SEC investigators.[81]

On September 25, 2009, Citigroup Inc. filed a federal lawsuit against Morgan Stanley, claiming its rival failed to pay $245 million due under a credit default swap agreement. The breach-of-contract lawsuit was filed in Manhattan federal court and seeks unspecified damages.[82]

2007

The Financial Industry Regulatory Authority (FINRA) announced a $12.5 million settlement with Morgan Stanley on September 27, 2007. This resolved charges that the firm's former affiliate, Morgan Stanley DW, Inc. (MSDW), failed on numerous occasions to provide emails to claimants in arbitration proceedings as well as to regulators. The company had claimed that the destruction of the firm's email servers in the September 11 attacks in 2001, terrorist attacks on New York's World Trade Center resulted in the loss of all emails before that date. In fact, the firm had millions of earlier emails that had been retrieved from backup copies stored in another location that was not destroyed in the attacks.[83] Customers who had lost their arbitration cases against Morgan Stanley DW Inc. because of their inability to obtain these emails to demonstrate Morgan Stanley's misconduct received a token amount of money as a result of the settlement.

In July 2007, Morgan Stanley agreed to pay $4.4 million to settle a class-action lawsuit. The firm was accused of incorrectly charging clients for storage of precious metals.[84]

In August 2007, Morgan Stanley was fined $1.5 million and paid $4.6 million in restitution to customers related to excessive mark-ups in 2,800 transactions. An employee was charged $40,000 and suspended for 15 days.[85]

2008

Under a settlement with New York Attorney General Andrew M. Cuomo, the firm agreed to repurchase approximately $4.5 billion worth of auction rate securities. The firm was accused of misrepresenting auction rate securities in their sales and marketing.[86]

2009

In March 2009, FINRA announced Morgan Stanley was to pay more than $7 million for misconduct in the handling of the accounts of 90 Rochester, New York-area retirees. [87]

In May 2009, a trader at the firm was suspended by the FSA for a series of unauthorized commodities trades entered after becoming intoxicated during a three and half hour lunch.[88] A week later another trader at the firm was banned for deliberately disadvantaging clients by 'pre-hedging' trades without their consent.[89]

The Financial Services Authority fined the firm £1.4m for failing to use controls properly relating to the actions of a rogue trader on one of its trading desks. Morgan Stanley admitted on June 18, 2008, this resulted in a $120m loss for the firm.[90]

Morgan Stanley managing director Du Jun was convicted of insider trading after a criminal trial in Hong Kong. Mr. Du was accused of buying 26.7 million shares of Citic Resource Holdings while in possession of confidential information about the company. He gained this information as part of a Morgan Stanley team working with the company on a bond issuance and the purchase of an oil field in Kazakhstan. Morgan Stanley's compliance department was criticized for failing to detect Mr. Du's illegal trades.[91]

2010

In April, the Commodity Futures Trading Commission announced the firm agreed to pay $14 million related to an attempt to hide prohibited trading activity in oil futures.[92]

2011

A Morgan Stanley trader was barred from the brokerage industry and fined for entering fake trades to fool firm risk management systems, causing millions in losses.[93]

The Department of Justice sought a $4.8 million fine from Morgan Stanley for its part in an electricity price-fixing scandal. Con Edison estimated that the crime cost New York State consumers about $300 million. Morgan Stanley earned revenues of $21.6 million from the fraud.[94]

2012

On April 3, the Federal Reserve announced a consent order against the firm for "a pattern of misconduct and negligence in residential mortgage loan servicing and foreclosure processing." The consent order required the firm to review foreclosure proceedings conducted by the firm. The firm was also responsible for monetary sanctions. [95]

Garth R. Peterson, one of Morgan Stanley's highest-ranking real estate executives in China, pleaded guilty on April 25 to violating U.S. federal anti-corruption laws. He was charged with secretly acquiring millions of dollars' worth of property investments for himself and a Chinese government official. The official steered business to Morgan Stanley.[96]

Morgan Stanley was fined $55,000 by Nasdaq OMX for three violations of exchange rules. A Morgan Stanley client algorithm started buying and selling enormous volumes by mistake. Furthermore, after the exchange detected the error, they were unable to contact the employee responsible.[97]

Morgan Stanley settled a claim from FINRA and paid restitution totaling almost $2.4 million. Morgan Stanley was accused of improperly supervising and training financial advisors in the use of non-traditional ETF products. This resulted in inappropriate recommendations to several retail brokerage customers.[98]

Morgan Stanley is facing lawsuits and government investigation surrounding the Facebook IPO. It was claimed that Morgan Stanley downgraded their earnings forecasts for the company while conducting the IPO roadshow. Allegedly, they passed this information to only a handful of institutional investors. "The allegations, if true, are a matter of regulatory concern" to FINRA and the SEC according to FINRA Chairman Richard Ketchum.[99]

Morgan Stanley agreed to pay a $5 million fine to the Commodity Futures Trading Commission and an additional $1.75 million to CME and the Chicago Board of Trade. Morgan Stanley employees improperly executed fictitious sales in Eurodollar and Treasury Note futures contracts.[100]

On August 7, 2012, it was announced that Morgan Stanley would pay $4.8 million in fines to settle a price-fixing scandal, which had been estimated to have cost New Yorkers $300 million to date. Morgan Stanley made no admission of any wrongdoing; however, the Justice Department commented that they hoped this would "send a message to the banking industry".[101]

2013

In Morgan Stanley v. Skowron, 989 F. Supp. 2d 356 (S.D.N.Y. 2013), applying New York's faithless servant doctrine to a case involving Morgan Stanley's hedge fund subsidiary, United States District Judge Shira Scheindlin held that a hedge fund's employee engaging in insider trading in violation of his company's code of conduct, which also required him to report his misconduct, must repay his employer the full $31 million his employer paid him as compensation during his period of faithlessness.[102][103][104][105] Judge Scheindlin called the insider trading the "ultimate abuse of a portfolio manager's position."[103] The judge also wrote: ""In addition to exposing Morgan Stanley to government investigations and direct financial losses, Skowron's behavior damaged the firm's reputation, a valuable corporate asset."[103]

2014

In February, Morgan Stanley agreed to pay $1.25 billion to the US government, as a penalty for concealing the full risk associated with mortgage securities with the Federal Housing Finance Agency.[106]

In September 2014, Morgan Stanley agreed to pay $95 million to resolve a lawsuit by the Public Employees' Retirement System of Mississippi (MissPERS) and the West Virginia Investment Management Board. Morgan Stanley was accused of misleading investors in mortgage-backed securities.[107]

2015

In May 2015, Morgan Stanley was fined $2 million for short-interest reporting and rule violations for more than six years, by the Financial Industry Regulatory Authority.[108]

In June, the Financial Industry Regulatory Authority announced that it fined Morgan Stanley Smith Barney, LLC (Morgan Stanley) $650,000 for failing to implement reasonable supervisory systems to monitor the transmittal of customer funds to third-party accounts. [109]

2016

February 2016, Morgan Stanley will pay $3.2 billion to settle with state and federal authorities over Morgan Stanley's creation of mortgage-backed bonds before the financial crisis.[110]

August 2016, Morgan Stanley Hong Kong Securities Ltd. was fined HK$18.5 million ($2.4 million) by Hong Kong's securities regulator, Securities and Futures Commission, for violations of Hong Kong's Code of Conduct. Included was Morgan Stanley's failure to avoid a conflict of interest between principal and agency trading.[111]

December 2016, another unit of Morgan Stanley paid $7.5 million to settle customer protection rule violations.[112]

2017

In January 2017, the corporation was fined $13 million due to overbilling and violating investor asset safeguarding custody rules. Morgan Stanley agreed to pay the fine without commenting on the charges.[112]

2018

Douglas E. Greenberg, a broker, was fired in 2018 after it was reported that four women from Lake Oswego, Oregon, had sought police protection against him over a 15-year period on allegations of harassment, threats, and assault.[113][114][115][116] According to the report, Morgan Stanley executives were aware of the allegations, and knew of at least two arrests and a federal subpoena against him, but did not take any action.[113][117] The story was called a #MeToo moment for Portland's financial service industry.[115] He managed tens of millions of dollars, and had made the 2018 Forbes list for top wealth advisors in Oregon.[113][118]

In December 2018, FINRA announced a $10 million fine against Morgan Stanley for failures in its anti-money laundering compliance. Morgan Stanley violated the Bank Secrecy Act over a period of five years.[119]

2019

In April 2019, Morgan Stanley agreed to pay $150 million to settle charges that it had misled two large California public pension funds about the risks of mortgage-backed securities.[120] California Attorney General Xavier Becerra commented: "Morgan Stanley lied about the risk of its products and put profits over teachers and public employees who relied on its advice." Morgan Stanley denied wrongdoing.[121]

Morgan Stanley also paid $382,500 for failure to supervise a broker's trading activity over a four-year period.[122] The firm paid $225,000 for transactions where customers sold one municipal bond while purchasing another municipal bond that was nearly identical to the bond sold or provided no apparent economic benefit to the customer. These transactions generated $340,000 in commissions and fees for Morgan Stanley.[123]

Morgan Stanley paid a $1.5 million fine to settle SEC claims that it put client money into more expensive mutual fund share classes when cheaper options were available despite representations to clients that it used tools to find the least costly option.[124]

2020

In May 2020, Morgan Stanley agreed to pay a $5 million penalty to settle allegations made by the SEC that the corporation provided misleading information to some clients in the so-called retail wrap fee programs regarding trade-execution services and transaction costs.[125]

List of officers and directors

Operating committee[126]
  • James P. Gorman: Chairman and Chief Executive Officer
  • Jeff Brodsky: Chief Human Resources Officer
  • Mark Eichorn: Global Co-Head of Investment Banking
  • Eric Grossman: Chief Legal Officer
  • Keishi Hotsuki: Chief Risk Officer
  • Susuan Huang: Global Co-Head of Investment Banking
  • Sam Kellie-Smith: Global Head of Fixed Income
  • Thomas Nides: Vice Chairman
  • Shelley O'Connor: Chairman and CEO, Morgan Stanley Private Bank, N.A., and Morgan Stanley Bank, N.A.
  • Franck Petitgas: Head of International
  • Ted Pick: Global Head of Institutional Securities
  • Jonathan Pruzan: Chief Financial Officer
  • Robert Rooney: Global Head of Technology, Operations, and Firm Resilience
  • Andy Saperstein: Head of Wealth Management
  • Dan Simkowitz: Head of Investment Management
  • Clare Woodman: Head of Europe, the Middle East, and Africa

Board of directors[127]
  • James P. Gorman
  • Elizabeth Corley
  • Alistair Darling
  • Thomas H. Glocer
  • Robert H. Herz
  • Nobuyuki Hirano
  • Stephen J. Luczo
  • Jami Miscik
  • Dennis M. Nally
  • Takeshi Ogasawara
  • Hutham S. Olayan
  • Mary Schapiro
  • Perry M. Traquina
  • Rayford Wilkins, Jr.

Global and other headquarters

The Morgan Stanley world headquarters are located in New York City, the European headquarters are in London, Asia Pacific headquarters are in both Hong Kong and Tokyo, Canada headquarters in Toronto. [128][129]

Notable alumni
gollark: You are like a 5m³ sphere of pure indium in orbit of Pluto.
gollark: We are not main characters. HelloBoi is.
gollark: Ooo, or neapolitan, however you spell that.
gollark: Can I have strawberry nihilism?
gollark: I had to "borrow" an arbitrarily powerful computer from some mathematicians so I could store π properly.

See also

Notes
  1. Morgan Stanley 2020 Proxy statement
  2. "Morgan Stanley 2019 Form 10-K Annual Report".
  3. "Basel III Pillar 3 Disclosures Report For the Quarterly Period Ended December 31, 2019" (PDF).
  4. "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved November 10, 2018.
  5. "Morgan Stanley Interactive Timeline". www.morganstanley.com. Archived from the original on March 23, 2016. Retrieved May 14, 2018.
  6. "Morgan Stanley Chairman and CEO Philip J. Purcell Announces Plans to Retire". Morgan Stanley. Retrieved May 14, 2018.
  7. "SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Morgan Stanley, Dean Witter, Discover & Co.)" (PDF). Morgan Stanley.
  8. "History of Morgan Stanley Dean Witter & Company – FundingUniverse". www.fundinguniverse.com. Retrieved May 14, 2018.
  9. McGeehan, Patrick (2001). "THE MARKETS: Market Place; Morgan Stanley decides to drop the Dean Witter name". The New York Times. ISSN 0362-4331. Retrieved May 14, 2018.
  10. "MORGAN STANLEY'S NEW BRAND UNVEILS TUESDAY". Retrieved May 14, 2018.
  11. Wile, Rob. "DUELS, BOMBINGS AND APPLE: The Incredible Story Behind The Creation Of JPMorgan Chase". Business Insider. Retrieved April 27, 2020.
  12. Bazoobandi, Sara (2013). The Political Economy of the Gulf Sovereign Wealth Funds: A Case Study of Iran, Kuwait, Saudi Arabia and the United Arab Emirates. Routledge. ISBN 978-0-415-52222-9.
  13. Knee, Jonathan A. (August 15, 2006). The Accidental Investment Banker: Inside the Decade that Transformed Wall Street. Oxford University Press. ISBN 978-0-19-992414-1.
  14. Committee, United States Congress House Temporary National Economic (1939). Investigation of Concentration of Economic Power: Hearings Before the Temporary National Economic Committee ... U.S. Government Printing Office.
  15. Saxon, Wolfgang (July 18, 1992). "Perry E. Hall, Founding Partner Of Morgan Stanley, Is Dead at 96". The New York Times. ISSN 0362-4331. Retrieved April 27, 2020.
  16. "World Bank Back in U.S. Debt Market". The New York Times. December 10, 1975. ISSN 0362-4331. Retrieved April 27, 2020.
  17. "Alumni Awards 2001 - Dick Fisher". HBS.edu. July 2, 2001. Retrieved September 3, 2014.
  18. Pak, Susie J. (June 1, 2013). Gentlemen Bankers. Harvard University Press. ISBN 978-0-674-07557-3.
  19. Bleakley, Fred R. (June 17, 1985). "Goldman's Rise in Real Estate". The New York Times. ISSN 0362-4331. Retrieved April 27, 2020.
  20. Chernow, Ron (January 19, 2010). The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance. Grove/Atlantic, Inc. ISBN 978-0-8021-9813-6.
  21. Tribune, Chicago. "VAN KAMPEN NEARING SALE TO MORGAN STANLEY". chicagotribune.com. Retrieved April 27, 2020.
  22. Truell, Peter (February 6, 1997). "Morgan Stanley and Dean Witter Agree to Merge". The New York Times. ISSN 0362-4331. Retrieved April 27, 2020.
  23. "Dean Witter to Buy Morgan Stanley in $10-Billion Deal". Los Angeles Times. February 6, 1997. Retrieved April 27, 2020.
  24. Newswires, Cheryl Winokur MunkDow Jones (January 30, 2001). "Morgan Stanley to Eliminate Dean Witter From Its Name". Wall Street Journal. ISSN 0099-9660. Retrieved April 27, 2020.
  25. "Morgan Stanley Case Study" (PDF). FEMA. Retrieved April 27, 2020.
  26. Stewart, James B. "The Real Heroes Are Dead". The New Yorker. Retrieved April 27, 2020.
  27. "Train named after Cornish 9/11 hero". BBC News. April 13, 2019. Retrieved April 27, 2020.
  28. "Surviving 9/11 gave former NHLer Rob Cimetta a new outlook on life". Archived from the original on October 28, 2009. Retrieved September 11, 2009.
  29. "Morgan Stanley 2005 Charitable Annual Report" (PDF). Archived from the original (PDF) on March 9, 2007. Retrieved May 5, 2007.
  30. "At Children's Hospitals, Friendly Designs". The New York Times. November 17, 2002.
  31. "NewYork-Presbyterian Morgan Stanley Children's Hospital | Columbia University Department of Surgery". columbiasurgery.org. Retrieved April 27, 2020.
  32. Moyer, Liz (June 13, 2005). "Lame Duck Purcell". Forbes Website. Retrieved March 22, 2008.
  33. Thomas Jr, Landon (April 21, 2005). "Morgan Stanley Exodus Continues as 8 Traders Leave". The New York Times. Retrieved March 22, 2008.
  34. Chief Will Leave Morgan Stanley, Ending Struggle. The New York Times, June 14, 2005
  35. "Only the Men Survive". New York Magazine.
  36. The Reward for Leaving: $113 Million. The New York Times, July 8, 2005
  37. "Bloomberg - Are you a robot?". www.bloomberg.com. Retrieved April 27, 2020.
  38. "Morgan Stanley posts loss on writedown". Joe Bel Bruno. Archived from the original on December 21, 2007. Retrieved December 19, 2007.
  39. Merced, Michael J. de la; Bradsher, Keith (December 19, 2007). "Morgan Stanley to Sell Stake to China Amid Loss". The New York Times. ISSN 0362-4331. Retrieved April 27, 2020.
  40. Patterson, Scott D., The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It, Crown Business, 352 pages, 2010. ISBN 0-307-45337-5 ISBN 978-0307453372 Amazon page for book. Specifically in an excerpt from "Chapter 10: The August Factor", in the January 23, 2010 Wall Street Journal.
  41. "Morgan Stanley to Advise U.S. on Fannie and Freddie". The New York Times. August 6, 2008. Retrieved August 11, 2008.
  42. Kudla, David. "Morgan Stanley's future is bright for investors". MarketWatch.
  43. Jagger, Suzy (September 19, 2008). "Morgan Stanley perplexes Wall Street as bank loses $20bn". The Times. Retrieved December 24, 2018.
  44. Duff McDonald, Last Man Standing (2009)
  45. Wall Street in crisis: Last banks standing give up investment bank status, The Guardian (London), September 22, 2008
  46. Goldman, Morgan Stanley Bring Down Curtain on an Era, Bloomberg, September 22, 2008
  47. "Mitsubishi UFJ Financial Group to Invest $9 billion in Morgan Stanley". September 29, 2008. Archived from the original on October 2, 2008. Retrieved October 2, 2008.
  48. Andrew Ross Sorkin (2009). Too Big to Fail. Viking. pp. 517–18.
  49. "Fed give OK to Mitsubishi, Morgan Stanley deal". Reuters. October 6, 2008. Retrieved April 14, 2012.
  50. "Mitsubishi UFJ buys 21% stake in Morgan Stanley". USA Today. October 13, 2008. Retrieved April 14, 2012.
  51. Clark, Andrew; Bowers, Simon (October 11, 2008). "Morgan Stanley hangs on Mitsubishi's $9bn pledge". The Guardian. London. Retrieved April 14, 2012.
  52. Sato, Shigeru; Taniguchi, Takako (April 2, 2012). "Mitsubishi UFJ Mulls Multi-Billion Dollar U.S. Bank Acquisition". Bloomberg. Retrieved April 14, 2012.
  53. "Morgan Stanley Speculating to Brink of Collapse Got $107 Billion From Fed". Bloomberg. Retrieved December 23, 2014.
  54. "Morgan Stanley Pledges Billion to Boost Sustainability". Bloomberg.
  55. Cheung, Sonja. "Morgan Stanley Asia Private-Equity Fund Raises $1.7 Billion". The Wall Street Journal. Retrieved July 11, 2014.
  56. "Morgan Stanley to cut 25% of fixed-income jobs in next 2 weeks". Gulf News. Retrieved December 1, 2015.
  57. "Morgan Stanley 4Q2015 Earnings Release" (PDF).
  58. https://www.nytimes.com/2020/02/20/business/dealbook/morgan-stanley-etrade.html
  59. "Morgan Stanley Reports Second Quarter Results" (PDF). Morgan Stanley Press Release. Retrieved July 27, 2014.
  60. FINS.com. "Morgan Stanley Overview". Retrieved July 19, 2010.
  61. Casteleyn, Jonathan. "Morgan Stanley and Goldman have bigger bond exposure than Bank of America and Citi". Market Realist. Market Realist, Inc. Retrieved September 11, 2014.
  62. Press Release Archived January 29, 2015, at the Wayback Machine. Morgan Stanley (January 13, 2009). Retrieved on July 19, 2013.
  63. Griffin, Donal. (May 31, 2012) Morgan Stanley Will Buy More of Smith Barney From Citigroup. Businessweek. Retrieved on July 19, 2013.
  64. "Morgan Stanley Receives Final Regulatory Approvals to Purchase Remaining 35% Interest in MSSB Wealth Management Joint Venture, Fulfilling Key Strategic Priority". Morgan Stanley. June 21, 2013. Archived from the original on January 29, 2015. Retrieved September 21, 2014.
  65. "Invesco to Buy Morgan Stanley Unit for $1.5 Billion". Deal Book. The New York Times. October 19, 2009. Retrieved October 20, 2009.
  66. "Morgan Stanley announces strategic partnership with Longchamp Asset Management and La Française AM… Schroder GAIA platform onboards the GAIA Avoca Credit fund". hedgeweek.com.
  67. "2018 Working Mother 100 Best Companies". Working Mother. Retrieved November 4, 2019.
  68. Elliott, Francis; Haynes, Deborah (August 23, 2004). "Times 20 Best Big Companies to Work For 2006 list". The Times. London. Retrieved February 8, 2007.
  69. "Great Place to Work Institute". Greatplacetowork-europe.com. February 18, 2010. Archived from the original on December 1, 2008. Retrieved July 9, 2011.
  70. Ulick, Jake (April 28, 2003). "Wall St. deal is finalized". CNN. Retrieved April 11, 2012.
  71. "Member Firm Disciplined for Special Reserve Bank Account Deficienciesand Related Supervisory Violations". June 9, 2004. Archived from the original on December 10, 2012. Retrieved April 11, 2012.
  72. "EEOC AND MORGAN STANLEY ANNOUNCE SETTLEMENT OF SEX DISCRIMINATION LAWSUIT". EEOC. July 12, 2004. Retrieved April 11, 2012.
  73. Anderson, Jenny (April 25, 2007). "Wall St. Firm Will Settle Sex Bias Suit". NYT. Retrieved April 11, 2012.
  74. "NASD Fines Morgan Stanley $2.2 Million for Late Reporting, Firm Temporarily Suspended from Registering New Brokers". Financial Industry Regulatory Authority. July 29, 2004. Retrieved April 11, 2012.
  75. "NYSE Regulation Announces a $19 Million Agreement with Morgan Stanley Citing Failure to Deliver Customer Prospectuses and Other Supervisory and Operational Failures". NYSE. September 22, 2004. Archived from the original on December 10, 2012. Retrieved April 11, 2012.
  76. "NASD Fines Morgan Stanley $100,000 For Municipal Bond Disclosure Violations". December 6, 2004. Retrieved April 11, 2012.
  77. "The New York Stock Exchange (NYSE) has hit US investment bank Morgan Stanley with a record $19m (£10m) fine". January 12, 2005. Retrieved April 12, 2012.
  78. Barton, Jill (May 19, 2005). "Jury Orders Firm to Pay Perelman $1.4 Billion; Morgan Stanley Cited for Fraud In Coleman Sale". Washington Post.
  79. "Morgan Stanley has billionaire Perelman's $1.58 billion award reversed in Sunbeam lawsuit". International Herald Tribune. March 29, 2009. Retrieved July 9, 2011.
  80. "Morgan Settles Suit on Overtime". Los Angeles Times. March 3, 2006. Retrieved July 9, 2011.
  81. "More E-Mail Problems, More Fines For Morgan Stanley". InformationWeek. Retrieved April 20, 2011.
  82. Glovin, David (September 25, 2009). "Citigroup Sues Morgan Stanley Over $250 million CDO". Bloomberg. Retrieved July 9, 2011.
  83. "FINRA News Release". Finra.org. Archived from the original on May 10, 2008. Retrieved July 9, 2011.
  84. "Morgan Stanley to settle class-action lawsuit". Reuters. June 12, 2007. Retrieved April 20, 2012.
  85. "FINA News Release". FINRA. Retrieved April 20, 2011.
  86. "Morgan Stanley Agrees to ARS Buy-Back Deal, Fines". AdvisorOne. Archived from the original on May 30, 2013. Retrieved April 20, 2011.
  87. "Morgan Stanley to Pay More than $7 Million to Resolve FINRA Charges Relating to Misconduct in Early Retirement Investment Promotion". FINRA. Retrieved April 20, 2012.
  88. Teather, David (May 20, 2009). "FSA bans Morgan Stanley's oiled trader". The Guardian. London. Retrieved April 20, 2012.
  89. Clark, Nick (May 27, 2009). "FSA bans another Morgan Stanley trader". The Independent. London. Retrieved April 20, 2012.
  90. Treanor, Jill (May 13, 2009). "FSA fines Morgan Stanley £1.4m over rogue trader". The Guardian. London. Retrieved April 20, 2012.
  91. "Ex-Morgan Stanley Banker Convicted of Insider Trading". The New York Times. September 11, 2009. Retrieved April 25, 2012.
  92. "In another Wall Street misdeed, Morgan Stanley settles oil-trading flap". McCaltchyDC. Retrieved April 20, 2012.
  93. Hilzenrath, David S. (June 2, 2011). "SEC: Morgan Stanley trader's trick caused millions in losses". WAPO. Retrieved April 20, 2012.
  94. Wald, Matthew L. (December 14, 2011). "$4.8 Million Sought in a Price-Fixing Case". The New York Times. p. 31. Retrieved June 25, 2012.
  95. "FRB:Press Release". Federal Reserve Board. Retrieved April 20, 2012.
  96. Lattman, Peter (April 25, 2012). "Morgan Stanley Executive Pleads Guilty to Violating Anticorruption Laws". The New York Times. Retrieved April 25, 2012.
  97. "Morgan Stanley fined over coding error". Retrieved May 26, 2012.
  98. Singer, Bill. "Morgan Stanley To Pay Nearly $2.4 Million ETF Fine and Restitution". Forbes. Retrieved May 26, 2012.
  99. Bennett, Dashiell (May 22, 2012). "Morgan Stanley Facing Investigation Over Pre-IPO Downgrade of Facebook". www.thewire.com. Retrieved May 26, 2012.
  100. "Morgan Stanley Will Pay $6.75M Over Claims". Retrieved June 7, 2012.
  101. "Bank To Pay $4.8 Million To Settle Charges That Cost Customers $300 Million". Huffington Post. August 7, 2012.
  102. Glynn, Timothy P.; Arnow-Richman, Rachel S.; Sullivan, Charles A. (2019). Employment Law: Private Ordering and Its Limitations. Wolters Kluwer Law & Business – via Google Books.
  103. Jerin Matthew (December 20, 2013). "'Faithless' Ex-Morgan Stanley Fund Manager Ordered to Repay $31m to Former Employer". International Business Times UK.
  104. Henning, Peter J. (December 23, 2013). "The Huge Costs of Being a 'Faithless Servant'". New York Times DealBook.
  105. "Morgan Stanley seeks $10.2 million from convicted former trader". GreenwichTime. January 15, 2013.
  106. "JP Morgan, Morgan Stanley fined $1.8 bn for concealing pre-crisis mortgage risk". RT television network. February 5, 2014.
  107. "Morgan Stanley to pay $95 million in U.S. mortgage-debt settlement". Reuters. September 9, 2014.
  108. "Morgan Stanley fined $2M over short-interest violations". USA Today. May 13, 2015.
  109. "FINRA Fines Morgan Stanley Smith Barney and Scottrade a Total of $950,000 for Failing to Supervise the Transmittal of Customer Funds to Third-Party Accounts". Financial Industry Regulatory Authority. June 22, 2015.
  110. "Morgan Stanley to Pay $3.2 Billion Over Flawed Mortgage Bonds". New York Times. February 11, 2016.
  111. "Morgan Stanley Fined $2.4M on Internal Control Failures". Zacks.com. August 25, 2016.
  112. "Morgan Stanley to pay $13 million for overbilling clients: SEC". Reuters. January 13, 2017. Retrieved January 15, 2017.
  113. Flitter, Emily (March 28, 2018). "Morgan Stanley Knew of a Star's Alleged Abuse. He Still Works There". The New York Times. ISSN 0362-4331. Retrieved March 29, 2018.
  114. "Disgraced broker still tweeting to clients with tax advice". New York Post. March 29, 2018. Retrieved March 29, 2018.
  115. "Morgan Stanley knew of abuse allegations against Lake Oswego broker: report". OregonLive.com. Retrieved March 29, 2018.
  116. https://www.nytimes.com/2018/04/03/business/morgan-stanley-broker-fired-abuse.html
  117. "Morgan Stanley's executives knew of an employee's alleged abuse, he still works there". Toronto Star. Retrieved March 30, 2018.
  118. "Best-In-State Wealth Advisors". Forbes. Retrieved March 29, 2018.
  119. Buckman, Caitlyn. "FINRA Fines Morgan Stanley For Five Years Of Ineffective Anti-Money Laundering Monitoring – Syracuse Law Review". Retrieved November 17, 2019.
  120. "Morgan Stanley to pay $150 million to settle California crisis-era mortgage charges". Reuters. April 25, 2019. Retrieved November 17, 2019.
  121. "Attorney General Becerra Announces $150 Million Settlement Against Morgan Stanley for Misleading California's Teachers and Workers with Pensions". State of California - Department of Justice - Office of the Attorney General. April 25, 2019. Retrieved November 17, 2019.
  122. "Massachusetts Fines Morgan Stanley for Broker's Excessive Trading". AdvisorHub. October 30, 2019. Retrieved November 17, 2019.
  123. "Morgan Stanley To Pay $382,000 To Settle Churning Charges". www.fa-mag.com. Retrieved November 17, 2019.
  124. "SEC fines Morgan Stanley $1.5m over alleged share class violations". sjo3ekt.js. Retrieved November 17, 2019.
  125. https://www.wsj.com/articles/morgan-stanley-to-pay-5-million-settlement-on-wrap-fee-claims-11589299389
  126. "Operating Committee". Morgan Stanley. Retrieved February 19, 2020.
  127. "Board of Directors". Morgan Stanley. Retrieved February 19, 2020.
  128. "Morgan Stanley in the United Kingdom". Morganstanley.com. Retrieved July 9, 2011.
  129. "Morgan Stanley in Hong Kong". Morganstanley.com. Retrieved July 9, 2011.
  130. "GM President Ammann will take over Cruise self-driving car unit". Reuters. Retrieved January 2, 2020.
  131. "Get to know Ben Fried, the CIO of Google, and learn some of his views on technology management". TechRepublic. Retrieved January 2, 2020.
  132. "Alphabet-backed Medicare Advantage startup Clover Health raises $500M". TechCrunch. Retrieved January 2, 2020.
  133. "How 3 First-Time Founders Turned One-Third Of Their Employees Into Millionaires". Business Insider. Retrieved January 2, 2020.

References

Further reading
  • Patricia Beard (2008). Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.