Morgan Stanley#Wealth Management

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.

{{See also| JPMorgan Chase|J.P. Morgan & Co.}}

Morgan Stanley traces its roots to J.P. Morgan & Co. After the U.S. Congress passed the Glass–Steagall Act in 1933, it was no longer possible for a corporation to have investment banking and commercial banking businesses under a single holding entity.{{Cite web|url=https://www.businessinsider.com/the-history-of-jpmorgan-chase-2012-3|title=DUELS, BOMBINGS AND APPLE: The Incredible Story Behind The Creation Of JPMorgan Chase|last=Wile|first=Rob|website=Business Insider|access-date=April 27, 2020}}{{Cite book|last=Bazoobandi|first=Sara|url=https://books.google.com/books?id=U75Fxg7UX-sC&q=Henry+S.+Morgan+and+Harold+Stanley%2C+left+J.P.+Morgan+&pg=PA67|title=The Political Economy of the Gulf Sovereign Wealth Funds: A Case Study of Iran, Kuwait, Saudi Arabia and the United Arab Emirates|date=2013|publisher=Routledge|isbn=978-0-415-52222-9|language=en}} 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. The firm formally opened its doors for business on September 16, 1935, at 2 Wall Street, New York City, just down the street from J.P. Morgan.{{Cite book|last=Knee|first=Jonathan A.|url=https://books.google.com/books?id=uxkzcvxZTgQC&q=morgan+stanley+opened+the+doors+for+business+on+September+16%2C+1935&pg=PT114|title=The Accidental Investment Banker: Inside the Decade that Transformed Wall Street|date=August 15, 2006|publisher=Oxford University Press|isbn=978-0-19-992414-1|language=en}} The firm was involved with the distribution of 1938 US$100 million (~${{Format price|{{Inflation|index=US-GDP|value=100000000|start_year=1938}}}} in {{Inflation/year|US-GDP}}) of debentures for the United States Steel Corporation as the lead underwriter.{{Cite book|last=Committee|first=United States Congress House Temporary National Economic|url=https://books.google.com/books?id=_TvO_P_vmfcC&q=morgan+stanley+steel+corporation+distribution+1938&pg=PA13006|title=Investigation of Concentration of Economic Power: Hearings Before the Temporary National Economic Committee ...|date=1939|publisher=U.S. Government Printing Office|language=en}} The firm also obtained the distinction of being the lead syndicate in the 1939 U.S. rail financing.{{Citation needed|date=April 2020}} The firm went through a reorganization in 1941 to allow for more activity in its securities business.{{Citation needed|date=April 2020}}

The firm was led by Perry Hall, the last founder to lead Morgan Stanley, from 1951 until 1961.{{Cite news|last=Saxon|first=Wolfgang|url=https://www.nytimes.com/1992/07/18/nyregion/perry-e-hall-founding-partner-of-morgan-stanley-is-dead-at-96.html|title=Perry E. Hall, Founding Partner Of Morgan Stanley, Is Dead at 96|date=July 18, 1992|work=The New York Times|access-date=April 27, 2020|language=en-US|issn=0362-4331}} During this period, the firm co-managed the World Bank's triple-A-rated bonds offering of 1952,{{Cite news|url=https://www.nytimes.com/1975/12/10/archives/world-bank-backin-us-debt-market-borrowing-up-big-offering-due.html|title=World Bank Back in U.S. Debt Market|date=December 10, 1975|work=The New York Times|access-date=April 27, 2020|language=en-US|issn=0362-4331}} as well as coming up with General Motors' US$300 million debt issue,{{Citation needed|date=April 2020}} US$231 million IBM stock offering,{{Citation needed|date=April 2020}} and the US$250 million AT&T's debt offering.{{Citation needed|date=April 2020}}

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.{{cite web|url=http://hbswk.hbs.edu/archive/2344.html|title=Alumni Awards 2001 - Dick Fisher|date=July 2, 2001|website=HBS.edu|access-date= September 3, 2014}} In 1967, it established the Morgan & Cie, International in Paris in an attempt to enter the European securities market.{{Cite book|last=Pak|first=Susie J.|url=https://books.google.com/books?id=d5EwvU7PgtgC&q=In+1967+Morgan+&pg=PA235|title=Gentlemen Bankers|date=June 1, 2013|publisher=Harvard University Press|isbn=978-0-674-07557-3|language=en}} The firm acquired Brooks, Harvey & Co., Inc. in 1967 and established a presence in the real estate business.{{Cite news|last=Bleakley|first=Fred R.|url=https://www.nytimes.com/1985/06/17/business/goldman-s-rise-in-real-estate.html|title=Goldman's Rise in Real Estate|date=June 17, 1985|work=The New York Times|access-date=April 27, 2020|language=en-US|issn=0362-4331}} The sales and trading business is believed to be the brainchild of Bob Baldwin.{{Cite book|last=Chernow|first=Ron|url=https://books.google.com/books?id=sgNUEqkgctEC&q=morgan+stanley+sales+and+trading+business+is+believed+to+be+from+Bob+Baldwin.&pg=PT542|title=The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance|date=January 19, 2010|publisher=Grove/Atlantic, Inc.|isbn=978-0-8021-9813-6|language=en}}

In 1996, Morgan Stanley acquired Van Kampen American Capital.{{Cite web|url=https://www.chicagotribune.com/news/ct-xpm-1996-06-22-9606220203-story.html|title=VAN KAMPEN NEARING SALE TO MORGAN STANLEY|last=Tribune|first=Chicago|website=chicagotribune.com|date=June 22, 1996 |language=en-US|access-date=April 27, 2020}}

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On February 5, 1997, the company merged with Dean Witter Discover & Co., the spun-off financial services business of Sears Roebuck.{{Cite news|last=Truell|first=Peter|url=https://www.nytimes.com/1997/02/06/business/morgan-stanley-and-dean-witter-agree-to-merge.html|title=Morgan Stanley and Dean Witter Agree to Merge|date=February 6, 1997|work=The New York Times|access-date=April 27, 2020|language=en-US|issn=0362-4331}} 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.{{Cite web|url=https://www.latimes.com/archives/la-xpm-1997-02-06-mn-26059-story.html|title=Dean Witter to Buy Morgan Stanley in $10-Billion Deal|date=February 6, 1997|website=Los Angeles Times|language=en-US|access-date=April 27, 2020}} In 1998, the name of the firm was changed to "Morgan Stanley Dean Witter & Co."{{Cite news|first=Cheryl|last=Winokur Munk|via=Dow Jones Newswires|url=https://www.wsj.com/articles/SB980796460749083172|title=Morgan Stanley to Eliminate Dean Witter From Its Name|date=January 30, 2001|work=The Wall Street Journal|access-date=April 27, 2020|language=en-US|issn=0099-9660}} Originally, the name was chosen to be the combination of the two predecessor companies to avoid tension between the two firms. Eventually, in 2001 "Dean Witter" was further dropped and the name became "Morgan Stanley" for unrevealed reasons. The merged firm began expanding overseas operations: in 1999, Mack set up a joint venture in India with local partner JM Financial.{{Cite web|last1=John|first1=Satish|last2=Nambisan|first2=Raj|date=February 22, 2007|title=U-turn: Finally, Nimesh Kampani sells out to Morgan Stanley|url=https://www.dnaindia.com/business/report-u-turn-finally-nimesh-kampani-sells-out-to-morgan-stanley-1081566|access-date=August 7, 2021|website=DNA India|language=en}}

Morgan Stanley had offices located on 35 floors across buildings 1, 2, and 5 of the World Trade Center, and was the largest tenant of the WTC complex. Most of these offices had been inherited from Dean Witter which had occupied the space since the mid-1980s.{{Citation needed|date=April 2020}} The firm lost 13 employees during the September 11 attacks in 2001{{Cite web|url=https://www.fema.gov/media-library-data/1387572158481-3561e0b74b8da0f6deb4424c9a29bbf6/business_morganstanley.pdf|title=Morgan Stanley Case Study|website=FEMA|access-date=April 27, 2020}} (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.{{Cite magazine|url=https://www.newyorker.com/magazine/2002/02/11/the-real-heroes-are-dead|title=The Real Heroes Are Dead|last=Stewart|first=James B.|magazine=The New Yorker|date=February 4, 2002|language=en|access-date=April 27, 2020}}{{Cite news|url=https://www.bbc.com/news/uk-england-cornwall-47866351|title=Train named after Cornish 9/11 hero|date=April 13, 2019|work=BBC News|access-date=April 27, 2020|language=en-GB}} 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.{{cite web |url=http://www.lowermanhattan.info/news/morgan_stanley_to_move_52052.aspx |title=Surviving 9/11 gave former NHLer Rob Cimetta a new outlook on life |access-date=September 11, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20091028030602/http://www.lowermanhattan.info/news/morgan_stanley_to_move_52052.aspx |archive-date=October 28, 2009 }}

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In 2003, New York–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.{{cite web|url=http://www.morganstanley.com/about/community/charitable_annual2005.pdf|title=Morgan Stanley 2005 Charitable Annual Report|access-date=May 5, 2007 |archive-url = https://web.archive.org/web/20070309154119/http://www.morganstanley.com/about/community/charitable_annual2005.pdf |archive-date = March 9, 2007}} 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.{{cite news|title=At Children's Hospitals, Friendly Designs|url=https://www.nytimes.com/2002/11/17/realestate/at-children-s-hospitals-friendly-designs.html?pagewanted=all|work=The New York Times|date=November 17, 2002}}{{Cite web|url=https://columbiasurgery.org/general-surgery-residency/childrens-hospital-new-york-chony|title=NewYork-Presbyterian Morgan Stanley Children's Hospital {{!}} Columbia University Department of Surgery|website=columbiasurgery.org|access-date=April 27, 2020}}

The company found itself in the midst of a management crisis starting in March 2005{{cite news|url=https://www.forbes.com/2005/06/13/morgan-stanley-purcell-quit-cx_lm_0613quit.html?boxes=custom|title=Lame Duck Purcell|access-date=March 22, 2008|work=Forbes Website|date=June 13, 2005|first=Liz|last=Moyer}} that resulted in a loss of the firm's staff.{{cite news |url=https://www.nytimes.com/2005/04/21/business/21wall.html|title=Morgan Stanley Exodus Continues as 8 Traders Leave |access-date=March 22, 2008 |work=The New York Times | first=Landon Jr.| last=Thomas | date=April 21, 2005}} Purcell resigned as CEO of Morgan Stanley in June 2005 when a highly public campaign by former Morgan Stanley partners[https://www.nytimes.com/2005/06/14/business/14morgan.html Chief Will Leave Morgan Stanley, Ending Struggle]. The New York Times, June 14, 2005{{cite web |url=http://nymag.com/news/business/46476/index4.html |title=Only the Men Survive |work=New York Magazine|date=April 25, 2008 }} 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.[https://www.nytimes.com/2005/07/08/business/08morgan.html The Reward for Leaving: $113 Million]. The New York Times, July 8, 2005

On December 19, 2006, Morgan Stanley announced the spin-off of its Discover Card unit.{{Cite web|date=December 19, 2006|title=Morgan Stanley to Spin Off Discover Unit|url=https://www.bloomberg.com/news/articles/2006-12-19/morgan-stanley-to-spin-off-discover-unitbusinessweek-business-news-stock-market-and-financial-advice?sref=eMecddu3|access-date=April 27, 2020|website=Bloomberg.com}} The bank completed the spinoff of Discover Financial on June 30, 2007.[https://www.morganstanley.com/about-us-ir/pdf/71245Morgan%20Stanley_TaxBasisAllocationStmt_Final.pdf Distribution of Discover Financial Services Common Stock Morgan Stanley Stockholder Tax Basis Information – Morgan Stanley.] Retrieved January 27, 2021{{Cite news |last=Giannone |first=Joseph |date=2007-08-09 |title=Morgan Stanley sets Discover spin-off for June 30 |url=https://www.reuters.com/article/idUSN01324026/ |access-date=2024-05-27 |work=Reuters}}

In February 2007, Morgan Stanley announced the end of its Indian joint venture: the bank acquired its local partner's stake in the institutional brokerage business, and sold its own stake in the other businesses.{{Cite web|date=February 23, 2007|title=Morgan Stanley, Kampani end JV|url=https://timesofindia.indiatimes.com/business/india-business/morgan-stanley-kampani-end-jv/articleshow/1662473.cms|access-date=August 7, 2021|website=The Times of India|language=en}}{{Cite news|date=February 23, 2007|title=Morgan parts ways with JM Financial|work=The Economic Times|url=https://economictimes.indiatimes.com/industry/banking/finance/morgan-parts-ways-with-jm-financial/articleshow/1662562.cms|access-date=August 7, 2021}} The bank then set up a wholly-owned subsidiary; the country head of Investment Management, Narayan Ramachandran, became CEO of the new subsidiary. Aisha de Sequeira, a managing director in the Mergers and Acquisitions group, was made Head of Investment Banking.{{Cite web|date=October 10, 2007|title=Morgan Stanley In India Receives Merchant Banking License and Announces Two Senior Appointments|url=https://www.morganstanley.com/press-releases/morgan-stanley-in-india-receives-merchant-banking-license-and-announces-two-senior-appointments_5623|access-date=August 1, 2021|website=Morgan Stanley|language=en}}

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.{{cite web |url=http://biz.yahoo.com/ap/071219/earns_morgan_stanley.html |title=Morgan Stanley posts loss on writedown|access-date=December 19, 2007 |work=Joe Bel Bruno |archive-url = https://web.archive.org/web/20071221002410/http://biz.yahoo.com/ap/071219/earns_morgan_stanley.html |archive-date = December 21, 2007}}{{Cite news|last1=Merced|first1=Michael J. de la|url=https://www.nytimes.com/2007/12/19/business/19cnd-morgan.html|title=Morgan Stanley to Sell Stake to China Amid Loss|date=December 19, 2007|work=The New York Times|access-date=April 27, 2020|last2=Bradsher|first2=Keith|language=en-US|issn=0362-4331}}

The bank's Process Driven Trading unit was among 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 component of the 2008 financial crisis.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}} [https://www.amazon.com/Quants-Whizzes-Conquered-Street-Destroyed/dp/0307453375 Amazon page for book.] Specifically in [https://www.wsj.com/articles/SB10001424052748704509704575019032416477138 an excerpt] from "Chapter 10: The August Factor", in the January 23, 2010 Wall Street Journal.

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.{{cite news |url=https://www.nytimes.com/2008/08/06/business/06morgan.html?ref=business |title=Morgan Stanley to Advise U.S. on Fannie and Freddie |access-date=August 11, 2008 |work=The New York Times |date=August 6, 2008}} 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.{{Cite news |date=2013-09-11 |title=Banks seen at risk five years after Lehman collapse |url=https://economictimes.indiatimes.com/news/international/banks-seen-at-risk-five-years-after-lehman-collapse/articleshow/22473699.cms?from=mdr |access-date=2024-04-23 |work=The Economic Times |issn=0013-0389}}

The bank Morgan Stanley was reported to have lost over 80% of its market value during the 2008 financial crisis.{{cite web |url=http://www.marketwatch.com/story/morgan-stanleys-future-is-bright-for-investors-2013-10-08 |title=Morgan Stanley's future is bright for investors |author=Kudla, David |work=MarketWatch}} 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.{{cite news |url=https://www.thetimes.com/business-money/companies/article/morgan-stanley-perplexes-wall-street-as-bank-loses-dollar20bn-hfnnkhnn2z2 |title=Morgan Stanley perplexes Wall Street as bank loses $20bn |first=Suzy |last=Jagger |work=The Times |date=September 19, 2008 |access-date=December 24, 2018}} At one point, Hank Paulson offered Morgan Stanley to JPMorgan Chase at no cost, but JPMorgan's Jamie Dimon refused the offer.Duff McDonald, Last Man Standing (2009)

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.[https://www.theguardian.com/business/2008/sep/22/wallstreet.morganstanley Wall Street in crisis: Last banks standing give up investment bank status], The Guardian (London), September 22, 2008 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.[https://www.bloomberg.com/apps/news?pid=20601068&sid=aSfyFs2LTxYs&refer=home Goldman, Morgan Stanley Bring Down Curtain on an Era], Bloomberg, September 22, 2008

MUFG Bank, Japan's largest bank, invested $9 billion in a direct purchase of a 21% ownership stake in Morgan Stanley on September 29, 2008.{{cite web |url=https://www.morganstanley.com/about/press/articles/6962.html |title=Mitsubishi UFJ Financial Group to Invest $9 billion in Morgan Stanley |date=September 29, 2008 |access-date=October 2, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20081002023606/http://www.morganstanley.com/about/press/articles/6962.html |archive-date=October 2, 2008 }} The payment from MUFG was supposed to be wired electronically; however, because it needed to be made on an emergency basis on Columbus Day when banks were closed in the US, MUFG cut a US$9 billion physical check, the largest amount written via physical check at the time.{{cite book|title=Too Big to Fail|author=Andrew Ross Sorkin|pages=517–18|publisher=Viking|date=2009}}{{cite news |title=Behold: The $9 Billion Check That Rescued Morgan Stanley |url=https://www.businessinsider.com/the-9-billion-check-to-rescued-morgan-stanley-2009-11 |access-date=October 14, 2020 |work=Business Insider |date=November 20, 2009 |archive-url=https://web.archive.org/web/20200831120838/https://www.businessinsider.com/the-9-billion-check-to-rescued-morgan-stanley-2009-11 |archive-date=August 31, 2020}} The physical check was accepted by Robert A. Kindler, Global Head of Mergers and Acquisitions and Vice Chairman of Morgan Stanley, at the offices of Wachtell Lipton.{{cite web |author1=Morgan Stanley |title=Episode 04: Surviving the Crisis |url=https://www.youtube.com/watch?v=iPsiYIT79ig?t=863 | archive-url=https://ghostarchive.org/varchive/youtube/20211030/iPsiYIT79ig| archive-date=October 30, 2021|publisher=YouTube |access-date=October 14, 2020 |location=Timestamp 14:23 |date=September 16, 2020}}{{cbignore}} 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.{{cite news |url=https://www.reuters.com/article/us-financial-fed-morgan-idUSTRE49584320081007 |title=Fed give OK to Mitsubishi, Morgan Stanley deal |work= Reuters|date= October 6, 2008 | access-date=April 14, 2012}}{{cite news |url=https://www.usatoday.com/money/industries/banking/2008-10-13-morgan-mitsubishi_N.htm |title=Mitsubishi UFJ buys 21% stake in Morgan Stanley |work= USA Today |date= October 13, 2008 | access-date=April 14, 2012}}{{cite news |url=https://www.theguardian.com/business/2008/oct/11/morganstanley-banking |title=Morgan Stanley hangs on Mitsubishi's $9bn pledge |work= The Guardian |date= October 11, 2008 | access-date=April 14, 2012 |first1=Andrew |last1=Clark |first2=Simon |last2=Bowers |location=London}}{{cite news |url=https://www.bloomberg.com/news/2012-03-30/mitsubishi-ufj-considers-multibillion-dollar-u-s-bank-buyout.html|title=Mitsubishi UFJ Mulls Multi-Billion Dollar U.S. Bank Acquisition |work=Bloomberg |date= April 2, 2012 | access-date=April 14, 2012 |first1=Shigeru |last1=Sato |first2=Takako |last2=Taniguchi}}

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.{{cite news |title=Morgan Stanley Speculating to Brink of Collapse Got $107 Billion From Fed |url=https://www.bloomberg.com/news/2011-08-22/morgan-stanley-at-brink-of-collapse-got-107b-from-fed.html |work=Bloomberg |date=August 22, 2011 |access-date=December 23, 2014}}

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 $1 billion (~${{Format price|{{Inflation|index=US-GDP|value=1000000000|start_year=2013}}}} in {{Inflation/year|US-GDP}}) to help improve affordable housing as part of a wider push to encourage investment in efforts that aid economic, social and environmental sustainability.{{cite news| url=https://www.bloomberg.com/news/2013-11-01/morgan-stanley-pledges-1-billion-to-boost-sustainability.html | work=Bloomberg | title=Morgan Stanley Pledges Billion to Boost Sustainability}}

In July 2014, Morgan Stanley's Asian private equity arm announced it had raised around $1.7 billion (~${{Format price|{{Inflation|index=US-GDP|value=1700000000|start_year=2014}}}} in {{Inflation/year|US-GDP}}) for its fourth fund in the area.{{cite news |last=Cheung |first=Sonja |title=Morgan Stanley Asia Private-Equity Fund Raises $1.7 Billion |url=http://online.wsj.com/articles/morgan-stanley-asia-private-equity-fund-raises-1-7-billion-1404726430 |work=The Wall Street Journal |date=July 7, 2014 |access-date=July 11, 2014}}

In December 2015, it was reported that Morgan Stanley would be cutting around 25 percent of its fixed income jobs before month end.{{cite web|title=Morgan Stanley to cut 25% of fixed-income jobs in next 2 weeks|url=http://gulfnews.com/business/sectors/banking/morgan-stanley-to-cut-25-of-fixed-income-jobs-in-next-2-weeks-1.1630044|website=Gulf News|access-date=December 1, 2015}} In January 2016, the company reported that it had offices in "more than" 43 countries.{{cite web|title=Morgan Stanley 4Q2015 Earnings Release|url=http://www.morganstanley.com/about-us-ir/shareholder/4q2015.pdf}}

In October 2020, the company completed its acquisition of E*Trade, a deal announced in February 2020 for $13 billion, the biggest acquisition by a U.S. bank since the 2008 financial crisis.{{cite news |last1=Merced |first1=Michael J. de la |last2=Kelly |first2=Kate |last3=Flitter |first3=Emily |title=Morgan Stanley to Buy E-Trade, Linking Wall Street and Main Street |url=https://www.nytimes.com/2020/02/20/business/morgan-stanley-etrade.html |access-date=October 8, 2020 |work=The New York Times |date=June 16, 2020}}

In March 2021, Morgan Stanley completed its acquisition of Eaton Vance, a deal announced in October 2020. With the addition of Eaton Vance, Morgan Stanley now had $5.4 trillion of client assets across its Wealth Management and Investment Management segments.{{cite press release |url=https://www.morganstanley.com/press-releases/morgan-stanley-closes-acquisition-of-eaton-vance |title=Morgan Stanley Closes Acquisition of Eaton Vance |publisher=Morgan Stanley |date=March 1, 2021 |access-date=August 20, 2021 }}

The firm conducted layoffs in December 2022,{{cite news |last1=Hirsch |first1=Lauren |title=Morgan Stanley Cuts 2% of Global Work Force as Deal-Making Slows |url=https://www.nytimes.com/2022/12/06/business/morgan-stanley-layoffs.html |access-date=May 1, 2023 |work=The New York Times |date=December 6, 2022}}{{cite news |last1=Natarajan |first1=Sridhar |last2=Doherty |first2=Katherine |title=Morgan Stanley Plans 3,000 More Job Cuts as Dealmaking Slumps |url=https://www.bloomberg.com/news/articles/2023-05-01/morgan-stanley-plans-3-000-more-job-cuts-amid-dealmaking-slump?sref=CIpmV6x8 |access-date=May 1, 2023 |work=Bloomberg.com |date=May 1, 2023 |language=en}} and Bloomberg announced the firm expected more layoffs in mid-2023.{{cite news |last1=Natarajan |first1=Sridhar |title=Morgan Stanley Plans 3,000 More Job Cuts as Dealmaking Slumps |url=https://www.bloomberg.com/news/articles/2023-05-01/morgan-stanley-plans-3-000-more-job-cuts-amid-dealmaking-slump?sref=CIpmV6x8 |access-date=May 1, 2023 |work=Bloomberg.com |date=May 1, 2023 |language=en}}

On May 2, 2023, an individual familiar with the matter reported that Morgan Stanley has outlined its intention to reduce approximately 3,000 positions by the end of June. The projected reduction constitutes roughly 5 percent of the bank's overall workforce, with financial advisors and support staff exempted from these staff cuts.{{cite web |last1=Son |first1=Hugh |date=May 2, 2023 |title=Wall Street layoffs: Morgan Stanley |url=https://www.cnbc.com/2023/05/02/wall-street-layoffs-morgan-stanley.html |publisher=CNBC |access-date=May 2, 2023}}

In October 2024, Morgan Stanley entered into a 40,000-tonne carbon dioxide removal purchase agreement with Climeworks, a direct air capture startup company, for an undisclosed price.{{cite news|last=Brown|first=H. Claire|date=October 24, 2024|title=Climeworks Strikes 40,000-Ton Carbon Removal Deal With Morgan Stanley|work=The Wall Street Journal|publisher=News Corp|url=https://www.wsj.com/articles/climeworks-strikes-40-000-ton-carbon-removal-deal-with-morgan-stanley-952caa14|access-date=October 24, 2024}}

In January 2025, Morgan Stanley announced that it had decided to leave the Net- Zero Banking Alliance. Although this decision was made, Morgan Stanley remains vigilant in its commitment towards helping the world transition to net-zero carbon emissions.{{Cite news |date=January 3, 2025 |title=Morgan Stanley to leave sector climate coalition |url=https://www.reuters.com/business/finance/morgan-stanley-leave-sector-climate-coalition-2025-01-02/}}

The company's 3 divisions are as follows:

File:NS5865 Office building on Waterloo Street.jpg in Glasgow, Scotland in 2018]]

Morgan Stanley's Institutional Securities is the most profitable business segment. This business segment provides institutions with investment banking services such as capital raising and financial advisory services such as 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.{{cite web |url=http://www.fins.com/Finance/Companies/141/Morgan-Stanley | title=Morgan Stanley Overview | access-date=July 19, 2010 | author=FINS.com}} 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.{{cite web|last1=Casteleyn|first1=Jonathan|title=Morgan Stanley and Goldman have bigger bond exposure than Bank of America and Citi|url=http://marketrealist.com/2013/03/morgan-stanley-and-goldman-still-trump-bank-of-america-and-citi-in-bonds/|website=Market Realist|date=March 4, 2013|publisher=Market Realist, Inc.|access-date=September 11, 2014}}

The Global Wealth Management Group provides stockbrokerage and investment advisory services. 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 Morgan Stanley Smith Barney. Morgan Stanley owned 51% of the entity, and Citi held 49%.{{cite press release | url=https://www.morganstanley.com/press-releases/morgan-stanley-and-citi-to-form-industry-leading-wealth-management-business-through-joint-venture_af3e409a-e1b7-11dd-84e6-b390c77322d3 | title=Morgan Stanley and Citi To Form Industry-Leading Wealth Management Business Through Joint Venture | date=January 13, 2009 | access-date=October 2, 2020 | archive-date=January 29, 2015 | archive-url=https://web.archive.org/web/20150129103858/https://www.morganstanley.com/about/press/articles/af3e409a-e1b7-11dd-84e6-b390c77322d3.html | url-status=dead }} On May 31, 2012, Morgan Stanley exercised its option to purchase an additional 14% of the joint venture from Citi.{{cite press release | url=https://www.morganstanley.com/press-releases/morgan-stanley-advises-citigroup-of-intention-to-exercise-right-to-purchase-an-additional-14-of-morgan-stanley-smith-barney_2181366f-9435-4aae-a47f-0fd5a5875a72 | title=Morgan Stanley Advises Citigroup of Intention to Exercise Right to Purchase an Additional 14 Percent of Morgan Stanley Smith Barney | date=May 31, 2012}} 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.{{cite web |url=https://www.morganstanley.com/about/press/articles/8f65faa5-339d-4fb0-94bb-857ed3d4cfbc.html |title=Morgan Stanley Receives Final Regulatory Approvals to Purchase Remaining 35% Interest in MSSB Wealth Management Joint Venture, Fulfilling Key Strategic Priority |publisher=Morgan Stanley |date=June 21, 2013 |access-date=September 21, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20150129103655/https://www.morganstanley.com/about/press/articles/8f65faa5-339d-4fb0-94bb-857ed3d4cfbc.html |archive-date=January 29, 2015 }}

In February 2019, the company announced the acquisition of Solium Capital, a manager of employee stock plans, for $900 million (~${{Format price|{{Inflation|index=US-GDP|value=900000000|start_year=2019}}}} in {{Inflation/year|US-GDP}}).{{Cite news |title=Morgan Stanley, in Its Biggest Deal Since Crisis, Courts Future Millionaires |newspaper=Wall Street Journal |date=February 11, 2019 |url=https://www.wsj.com/articles/morgan-stanley-in-its-biggest-deal-since-crisis-courts-future-millionaires-11549885394|last1=Hoffman |first1=Liz }}

In October 2020, the company completed its acquisition of E-Trade, a deal announced in February 2020 for $13 billion, the biggest acquisition by a U.S. bank since the 2008 financial crisis.

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 $1.5 billion (~${{Format price|{{Inflation|index=US-GDP|value=1500000000|start_year=2009}}}} in {{Inflation/year|US-GDP}}), but would retain the Morgan Stanley brand.{{cite news |url=http://dealbook.blogs.nytimes.com/2009/10/19/invesco-to-buy-morgan-stanley-unit-for-15-billion/ |title=Invesco to Buy Morgan Stanley Unit for $1.5 Billion|access-date=October 20, 2009 |work=Deal Book |publisher=The New York Times | date=October 19, 2009}} 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.{{cite news|url=http://www.hedgeweek.com/2013/09/29/190653/morgan-stanley-announces-strategic-partnership-longchamp-asset-management-and-la-f|title=Morgan Stanley announces strategic partnership with Longchamp Asset Management and La Française AM… Schroder GAIA platform onboards the GAIA Avoca Credit fund|work=hedgeweek.com|date=September 29, 2013}}

In March 2018, Morgan Stanley acquired Mesa West, a leading U.S. commercial real estate credit platform, adding to its existing investment strategies and product offerings across real assets and private credit.{{Cite web |title=Morgan Stanley Investment Management Completes Acquisition of Mesa West Capital, LLC |url=https://www.morganstanley.com/press-releases/morgan-stanley-investment-management-completes-acquisition-of-me}}

In March 2021, Morgan Stanley completed its acquisition of Eaton Vance, a deal announced in October 2020. With the addition of Eaton Vance, Morgan Stanley now had $5.4 trillion of client assets across its Wealth Management and Investment Management segments.

Morgan Stanley is mainly owned by institutional investors, who own 62.00% of shares. The largest shareholders as of 31 December 2024 were:{{Cite web |title=Morgan Stanley (MS) Stock Major Holders - Yahoo Finance |url=https://finance.yahoo.com/quote/MS/holders/ |access-date=2025-03-10 |website=finance.yahoo.com |language=en-US}}

• Mitsubishi UFJ Financial Group (23.38%)
• State Street Corporation (6.90%)
• The Vanguard Group (6.83%)
• BlackRock (5.90%)
• JP Morgan Chase (2.54%)
• Capital International Investors (1.86%)
• Geode Capital Management (1.60%)
• 2,677 other institutions (12.99%)

• In 2020, Morgan Stanley was named IFR's Bank of the Year,{{Cite web |title=IFR Awards 2020: The winners |url=https://www.ifre.com/story/2754347/ifr-awards-2020-the-winners-ph1lhdwbkj}} and in 2021 Morgan Stanley was named Euromoney's best investment bank in the world.{{Cite web |title=The world's best investment bank 2021: How Morgan Stanley thrived in a year of challenge |date=September 10, 2021 |url=https://www.euromoney.com/article/28teoo6wfb47us1g69pmp/awards/awards-for-excellence/the-worlds-best-investment-bank-2021-how-morgan-stanley-thrived-in-a-year-of-challenge}}
• Fast Company named Morgan Stanley in its list of Best Workplaces for Innovators in 2020 and 2021.{{Cite web |title=Best Workplaces for Innovators |url=https://www.fastcompany.com/best-workplaces-for-innovators/2021}}
• 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.{{cite web |date=February 18, 2010 |title=Great Place to Work Institute |url=http://www.greatplacetowork-europe.com/best/list-jp.htm |url-status=dead |archive-url=https://web.archive.org/web/20081201103046/http://www.greatplacetowork-europe.com/best/list-jp.htm |archive-date=December 1, 2008 |access-date=July 9, 2011 |publisher=Greatplacetowork-europe.com}}
• The Times listed Morgan Stanley 5th in its 20 Best Big Companies to Work For 2006.{{cite news |date=March 5, 2006 |title=Times 20 Best Big Companies to Work For 2006 list |work=The Times |location=London |url=https://www.thetimes.com/article/about-the-20-best-big-companies-to-work-for-2006-list-zhf5w5qjpd2 |url-access=subscription |access-date=February 8, 2007}}
• Morgan Stanley was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mother.{{Cite web|url=https://www.workingmother.com/working-mother-100-best-companies-winners-2018|title=2018 Working Mother 100 Best Companies|website=Working Mother|language=en|access-date=November 4, 2019}}
• Family Digest named Morgan Stanley one of the "Best Companies for African Americans" in June 2004.{{cite web |url=https://www.prweb.com/releases/2004/06/prweb130858.htm#!|archive-url=https://web.archive.org/web/20210226105652/https://www.prweb.com/releases/2004/06/prweb130858.htm#!|url-status=dead|archive-date=February 26, 2021|title=Family Digest's Second Annual Best Companies for African Americans Awards }}

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.{{cite news|url=https://money.cnn.com/2003/04/28/news/wallst_settlement/index.htm|title=Wall St. deal is finalized

|work=CNN |date=April 28, 2003 |access-date=April 11, 2012|first1=Jake|last1=Ulick}}

In 2004, Morgan Stanley settled a sex discrimination suit brought by the Equal Employment Opportunity Commission for $54 million (~${{Format price|{{Inflation|index=US-GDP|value=54000000|start_year=2004}}}} in {{Inflation/year|US-GDP}}).{{cite web|url=http://www.eeoc.gov/eeoc/newsroom/release/7-12-04.cfm|title=EEOC AND MORGAN STANLEY ANNOUNCE SETTLEMENT OF SEX DISCRIMINATION LAWSUIT|work=EEOC |date=July 12, 2004 |access-date=April 11, 2012}} In 2007, the firm agreed to pay $46 million (~${{Format price|{{Inflation|index=US-GDP|value=46000000|start_year=2007}}}} in {{Inflation/year|US-GDP}}) to settle a class action lawsuit brought by eight female brokers.{{cite news|url=https://www.nytimes.com/2007/04/25/business/25bias.html|title=Wall St. Firm Will Settle Sex Bias Suit

|work=NYT |date=April 25, 2007 |access-date=April 11, 2012|first=Jenny|last=Anderson}}

In July 2004, the firm paid NASD a $2.2 million (~${{Format price|{{Inflation|index=US-GDP|value=2200000|start_year=2004}}}} in {{Inflation/year|US-GDP}}) fine for more than 1,800 late disclosures of reportable information about its brokers.{{cite web|url=http://www.finra.org/Newsroom/NewsReleases/2004/p010891|title=NASD Fines Morgan Stanley $2.2 Million for Late Reporting, Firm Temporarily Suspended from Registering New Brokers|work=Financial Industry Regulatory Authority|date=July 29, 2004|access-date=April 11, 2012|archive-date=October 4, 2014|archive-url=https://web.archive.org/web/20141004053844/http://www.finra.org/Newsroom/NewsReleases/2004/P010891|url-status=dead}}

In September 2004, the firm paid a $19 million (~${{Format price|{{Inflation|index=US-GDP|value=19000000|start_year=2004}}}} in {{Inflation/year|US-GDP}}) 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.{{cite web|url=https://www.nyse.com/press/1095675057023.html|title=NYSE Regulation Announces a $19 Million Agreement with Morgan Stanley Citing Failure to Deliver Customer Prospectuses and Other Supervisory and Operational Failures|work=NYSE|date=September 22, 2004|access-date=April 11, 2012|url-status=dead|archive-url=https://web.archive.org/web/20121210082915/http://www.nyse.com/press/1095675057023.html|archive-date=December 10, 2012}}

The New York Stock Exchange imposed a $19 million (~${{Format price|{{Inflation|index=US-GDP|value=19000000|start_year=2005}}}} in {{Inflation/year|US-GDP}}) fine on January 12, 2005, for alleged regulatory and supervisory lapses. At the time, it was the largest fine ever imposed by the NYSE.{{cite web|url=http://www.corp-ethics.com/company/morgan_stanley/morgan-stanley-hit-by-record-fine.html|title=The New York Stock Exchange (NYSE) has hit US investment bank Morgan Stanley with a record $19m (£10m) fine.|date=January 12, 2005|access-date=April 12, 2012}}

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 $604 million (~${{Format price|{{Inflation|index=US-GDP|value=604000000|start_year=2005}}}} in {{Inflation/year|US-GDP}}). 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.{{Cite news|title=Jury Orders Firm to Pay Perelman $1.4 Billion; Morgan Stanley Cited for Fraud In Coleman Sale|last=Barton|first=Jill|date=May 19, 2005|newspaper=The Washington Post}} The ruling was overturned on March 21, 2007, and Morgan Stanley was no longer required to pay the $1.57 billion (~${{Format price|{{Inflation|index=US-GDP|value=1570000000|start_year=2007}}}} in {{Inflation/year|US-GDP}}) verdict.{{cite web |url=http://www.iht.com/articles/ap/2007/03/21/america/NA-FIN-US-Morgan-Stanley-Perelman.php |title=Morgan Stanley has billionaire Perelman's $1.58 billion award reversed in Sunbeam lawsuit |work=International Herald Tribune |date=March 29, 2009 |access-date=July 9, 2011 |archive-date=February 17, 2008 |archive-url=https://web.archive.org/web/20080217044616/http://www.iht.com/articles/ap/2007/03/21/america/NA-FIN-US-Morgan-Stanley-Perelman.php |url-status=dead }}

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.{{cite news|url=https://www.latimes.com/archives/la-xpm-2006-mar-03-fi-wrap3-story.html |title=Morgan Settles Suit on Overtime |work=Los Angeles Times |date=March 3, 2006 |access-date=July 9, 2011}}

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.{{cite magazine|url=http://www.informationweek.com/news/187202749|title=More E-Mail Problems, More Fines For Morgan Stanley|magazine=InformationWeek|access-date=April 20, 2011}}

FINRA announced a $12.5 million (~${{Format price|{{Inflation|index=US-GDP|value=12500000|start_year=2007}}}} in {{Inflation/year|US-GDP}}) 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.{{cite web |url=http://www.finra.org/PressRoom/NewsReleases/2007NewsReleases/P037071 |title=FINRA News Release |publisher=Finra.org |access-date=July 9, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20080510152730/http://www.finra.org/PressRoom/NewsReleases/2007NewsReleases/P037071 |archive-date=May 10, 2008 }} 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 $4.4 million (~${{Format price|{{Inflation|index=US-GDP|value=4400000|start_year=2007}}}} in {{Inflation/year|US-GDP}}) to settle a class-action lawsuit. The firm was accused of incorrectly charging clients for storage of precious metals.{{cite news |url=http://uk.reuters.com/article/morganstanley-suit-idUKN1228014520070612 |archive-url=https://web.archive.org/web/20151227162551/http://uk.reuters.com/article/morganstanley-suit-idUKN1228014520070612 |url-status=dead |archive-date=December 27, 2015 |title=Morgan Stanley to settle class-action lawsuit |work=Reuters |access-date=April 20, 2012 |date=June 12, 2007}}

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.{{cite web|url=http://www.advisorone.com/2008/08/14/morgan-stanley-agrees-to-ars-buyback-deal-fines-au|title=Morgan Stanley Agrees to ARS Buy-Back Deal, Fines|publisher=AdvisorOne|access-date=April 20, 2011|archive-url=https://web.archive.org/web/20130530051208/http://www.advisorone.com/2008/08/14/morgan-stanley-agrees-to-ars-buyback-deal-fines-au|archive-date=May 30, 2013|url-status=dead}}

In March 2009, FINRA announced Morgan Stanley was to pay more than $7 million (~${{Format price|{{Inflation|index=US-GDP|value=7000000|start_year=2009}}}} in {{Inflation/year|US-GDP}}) for misconduct in the handling of the accounts of 90 Rochester, New York-area retirees.{{cite web|url=http://www.finra.org/Newsroom/NewsReleases/2009/P118270|title=Morgan Stanley to Pay More than $7 Million to Resolve FINRA Charges Relating to Misconduct in Early Retirement Investment Promotion|publisher=FINRA|access-date=April 20, 2012|archive-date=October 19, 2011|archive-url=https://web.archive.org/web/20111019191702/http://www.finra.org/Newsroom/NewsReleases/2009/P118270|url-status=dead}}

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 $120m (~${{Format price|{{Inflation|index=US-GDP|value=120000000|start_year=2008}}}} in {{Inflation/year|US-GDP}}) loss for the firm.{{cite news |url=https://www.theguardian.com/business/2009/may/13/rogue-trader-fined |title=FSA fines Morgan Stanley £1.4m over rogue trader |work=The Guardian |access-date=April 20, 2012 |first=Jill |last=Treanor |date=May 13, 2009 |location=London}}

In April 2010, 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.{{cite web |url=http://www.mcclatchydc.com/2010/04/29/93170/in-another-wall-street-misdeed.html |title=In another Wall Street misdeed, Morgan Stanley settles oil-trading flap |work=McCaltchyDC |access-date=April 20, 2012}}

Garth R. Peterson, one of Morgan Stanley's highest-ranking real estate executives in China, pleaded guilty on April 25, 2012 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.{{cite news|url=https://dealbook.nytimes.com/2012/04/25/morgan-stanley-executive-pleads-guilty-to-violating-anticorruption-laws/|title=Morgan Stanley Executive Pleads Guilty to Violating Anticorruption Laws|access-date=April 25, 2012 | work=The New York Times|first=Peter|last=Lattman|date=April 25, 2012}}

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.{{cite web |url=http://www.businessweek.com/news/2012-06-05/morgan-stanley-will-pay-5-million-to-resolve-cftc-trade-claims|archive-url=https://web.archive.org/web/20130506105552/http://www.businessweek.com/news/2012-06-05/morgan-stanley-will-pay-5-million-to-resolve-cftc-trade-claims|url-status=dead|archive-date=May 6, 2013|title=Morgan Stanley Will Pay $6.75M Over Claims|access-date=June 7, 2012}}

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".{{cite news| url=http://www.huffingtonpost.com/2012/08/07/morgan-stanley-price-fixing_n_1753637.html | work=Huffington Post | title=Bank To Pay $4.8 Million To Settle Charges That Cost Customers $300 Million | date=August 7, 2012}}

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 $31 million (~${{Format price|{{Inflation|index=US-GDP|value=31000000|start_year=2013}}}} in {{Inflation/year|US-GDP}}) his employer paid him as compensation during his period of faithlessness.{{Cite book|url=https://books.google.com/books?id=3RaGDwAAQBAJ&q=%22faithless+servant%22&pg=PA472|title=Employment Law: Private Ordering and Its Limitations|first1=Timothy P.|last1=Glynn|first2=Rachel S.|last2=Arnow-Richman|first3=Charles A.|last3=Sullivan|date= 2019|publisher=Wolters Kluwer Law & Business|isbn=9781543801064|via=Google Books}}{{Cite web|url=https://www.ibtimes.co.uk/faithless-ex-morgan-stanley-fund-manager-ordered-repay-31m-former-employer-1429819|author=Jerin Matthew|title='Faithless' Ex-Morgan Stanley Fund Manager Ordered to Repay $31m to Former Employer|date=December 20, 2013|website=International Business Times UK}}{{Cite web|url=https://dealbook.nytimes.com/2013/12/23/the-huge-costs-of-being-a-faithless-servant/|title=The Huge Costs of Being a 'Faithless Servant'|first=Peter J.|last=Henning|date=December 23, 2013|website=New York Times DealBook}}{{Cite web|url=https://www.greenwichtime.com/news/article/Morgan-Stanley-seeks-10-2-million-from-convicted-4193127.php|title=Morgan Stanley seeks $10.2 million from convicted former trader|date=January 15, 2013|work=GreenwichTime|access-date=July 30, 2019|archive-date=June 27, 2019|archive-url=https://web.archive.org/web/20190627172218/https://www.greenwichtime.com/news/article/Morgan-Stanley-seeks-10-2-million-from-convicted-4193127.php|url-status=dead}} Judge Scheindlin called the insider trading the "ultimate abuse of a portfolio manager's position". 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."

In February 2014, 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.{{cite news|url=https://www.bloomberg.com/news/articles/2014-02-04/morgan-stanley-agrees-to-1-25-billion-settlement-over-mbs-sales|title=Morgan Stanley Reaches $1.25 Billion Settlement of FHFA Suit|work=Bloomberg News|last=Moore|first=Michael|date=February 4, 2014|access-date=June 1, 2014}}

In September 2014, Morgan Stanley agreed to pay $95 million (~${{Format price|{{Inflation|index=US-GDP|value=95000000|start_year=2014}}}} in {{Inflation/year|US-GDP}}) 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.{{cite news| url=https://www.reuters.com/article/us-morganstanley-lawsuit/morgan-stanley-to-pay-95-million-in-u-s-mortgage-debt-settlement-idUSKBN0H401Q20140909| work=Reuters | title=Morgan Stanley to pay $95 million in U.S. mortgage-debt settlement | date=September 9, 2014}}

In May 2015, Morgan Stanley was fined $2 million (~${{Format price|{{Inflation|index=US-GDP|value=2000000|start_year=2015}}}} in {{Inflation/year|US-GDP}}) for short interest reporting and rule violations for more than six years, by FINRA.{{cite news| url=https://www.usatoday.com/story/money/2015/05/13/morgan-stanley-fined-by-finra/27230563 |work=USA Today | title=Morgan Stanley fined $2M over short-interest violations | date=May 13, 2015}}

February 2016, Morgan Stanley will pay $3.2 billion (~${{Format price|{{Inflation|index=US-GDP|value=3200000000|start_year=2016}}}} in {{Inflation/year|US-GDP}}) to settle with state and federal authorities over Morgan Stanley's creation of mortgage-backed bonds before the 2008 financial crisis.{{cite news| url=https://www.nytimes.com/2016/02/12/business/dealbook/morgan-stanley-to-pay-3-2-billion-over-flawed-mortgage-bonds.html |work=The New York Times |title=Morgan Stanley to Pay $3.2 Billion Over Flawed Mortgage Bonds | date=February 11, 2016}}

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.{{cite news| url=https://www.zacks.com/stock/news/229220/morgan-stanley-fined-24m-on-internal-control-failures |work=Zacks.com| title=Morgan Stanley Fined $2.4M on Internal Control Failures | date=August 25, 2016}}

December 2016, another unit of Morgan Stanley paid $7.5 million (~${{Format price|{{Inflation|index=US-GDP|value=7500000|start_year=2016}}}} in {{Inflation/year|US-GDP}}) to settle customer protection rule violations.{{cite news|title=Morgan Stanley to pay $13 million for overbilling clients: SEC|url=https://www.reuters.com/article/us-sec-morgan-stanley-idUSKBN14X27X|access-date=January 15, 2017|work=Reuters|date=January 13, 2017}}

In January 2017, the corporation was fined $13 million (~${{Format price|{{Inflation|index=US-GDP|value=13000000|start_year=2017}}}} in {{Inflation/year|US-GDP}}) due to overbilling and violating investor asset safeguarding custody rules. Morgan Stanley agreed to pay the fine without commenting on the charges.

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.{{Cite news|url=https://www.nytimes.com/2018/03/28/business/morgan-stanley-douglas-greenberg-financial-adviser.html|title=Morgan Stanley Knew of a Star's Alleged Abuse. He Still Works There.|last=Flitter|first=Emily|date=March 28, 2018|work=The New York Times|access-date=March 29, 2018|language=en-US|issn=0362-4331}}{{Cite news|url=http://www.oregonlive.com/business/index.ssf/2018/03/morgan_stanley_aware_of_abuse.html|title=Morgan Stanley knew of abuse allegations against Lake Oswego broker: report|work=OregonLive.com|access-date=March 29, 2018|language=en-US}}{{cite web |url=https://www.nytimes.com/2018/04/03/business/morgan-stanley-broker-fired-abuse.html |title=Morgan Stanley Fires Broker With History of Abuse Claims |work=The New York Times |last=Flitter |first=Emily |date=April 3, 2018 |access-date=August 20, 2021 |url-access=subscription}} 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.{{Cite news|url=https://www.thestar.com/business/2018/03/30/morgan-stanleys-executives-knew-of-an-employees-alleged-abuse-he-still-works-there.html|title=Morgan Stanley's executives knew of an employee's alleged abuse, he still works there|work=Toronto Star|access-date=March 30, 2018|language=en}} The story was called a #MeToo moment for Portland's financial service industry. He managed tens of millions of dollars (~${{Format price|{{Inflation|index=US-GDP|value=10000000|start_year=2018}}}} in {{Inflation/year|US-GDP}}), and had made the 2018 Forbes list for top wealth advisors in Oregon.{{Cite web|url=https://www.forbes.com/best-in-state-wealth-advisors/#3f29d9bb291d|title=Best-In-State Wealth Advisors|website=Forbes|access-date=March 29, 2018}}

In December 2018, FINRA announced a $10 million (~${{Format price|{{Inflation|index=US-GDP|value=10000000|start_year=2018}}}} in {{Inflation/year|US-GDP}}) 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.{{Cite web|url=http://lawreview.syr.edu/finra-fines-morgan-stanley-for-five-years-of-ineffective-anti-money-laundering-monitoring/|title=FINRA Fines Morgan Stanley For Five Years Of Ineffective Anti-Money Laundering Monitoring – Syracuse Law Review|last=Buckman|first=Caitlyn|language=en-US|access-date=November 17, 2019}}

In April 2019, Morgan Stanley agreed to pay $150 million (~${{Format price|{{Inflation|index=US-GDP|value=150000000|start_year=2019}}}} in {{Inflation/year|US-GDP}}) to settle charges that it had misled two large California public pension funds about the risks of mortgage-backed securities.{{Cite news|url=https://in.reuters.com/article/us-morgan-stanley-california-idINKCN1S12DC|archive-url=https://web.archive.org/web/20190426215753/https://in.reuters.com/article/us-morgan-stanley-california-idINKCN1S12DC|url-status=dead|archive-date=April 26, 2019|title=Morgan Stanley to pay $150 million to settle California crisis-era mortgage charges|date=April 25, 2019|work=Reuters|access-date=November 17, 2019|language=en}} 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.{{Cite web|url=https://oag.ca.gov/news/press-releases/attorney-general-becerra-announces-150-million-settlement-against-morgan-stanley|title=Attorney General Becerra Announces $150 Million Settlement Against Morgan Stanley for Misleading California's Teachers and Workers with Pensions|date=April 25, 2019|website=State of California - Department of Justice - Office of the Attorney General|language=en|access-date=November 17, 2019}}

In November 2019, Morgan Stanley fired or placed on leave four traders for suspected securities mismarking. The firm suspected that $100–140 million in losses were concealed by the mismarking of the value of the securities.{{Cite web|url=https://www.bloomberg.com/news/articles/2019-11-28/morgan-stanley-ousts-fx-traders-amid-multi-million-dollar-loss|title=Morgan Stanley Ousts FX Traders as It Probes Concealed Loss|date=November 28, 2019|work=Bloomberg|author=Stefania Spezzati, Donal Griffin, and Viren Vaghela}}

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.{{Cite news|url=https://citywireusa.com/registered-investment-advisor/news/sec-fines-morgan-stanley-1-5m-over-alleged-share-class-violations/a1291616|title=SEC fines Morgan Stanley $1.5m over alleged share class violations|work=sjo3ekt.js|access-date=November 17, 2019|language=en}}

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 retail wrap fee programs regarding trade-execution services and transaction costs.{{cite web |url=https://www.wsj.com/articles/morgan-stanley-to-pay-5-million-settlement-on-wrap-fee-claims-11589299389 |title=Morgan Stanley to Pay $5 Million Settlement on Wrap-Fee Claims |work=The Wall Street Journal |last=Sebastian |first=Dave |date=May 12, 2020 |access-date=August 20, 2021 }}

In September 2022, the SEC announced charges against Morgan Stanley stemming from the firm’s extensive failures, over a five-year period, to protect the personal identifying information of approximately 15 million customers. Morgan Stanley agreed to pay a $35 million penalty to settle the SEC charges.{{Cite web |language=en |url=https://www.sec.gov/news/press-release/2022-168 |title=Morgan Stanley Smith Barney to Pay $35 Million for Extensive Failures to Safeguard Personal Information of Millions of Customers |website=Securities and Exchange Commission |access-date=2024-03-23 }}

In November 2023, Attorney General of Connecticut William Tong announced a $6.5 million settlement with Morgan Stanley for compromising the personal information of its customers due to negligent security practices.{{Cite web |language=en |url=https://portal.ct.gov/AG/Press-Releases/2023-Press-Releases/Attorney-General-Tong-Announces-Settlement-with-Morgan-Stanley |title=Attorney General Tong Announces $6.5 Million Settlement with Morgan Stanley for Two Data Security Incidents |website=Connecticut's Official State Website |access-date=2024-03-23 }}

In January 2024, Morgan Stanley agreed to pay $249 million to settle a criminal investigation and a related Security and Exchange Commission probe related to the unauthorized disclosure of block trades to investors, by the bank's supervisor for such trades and another employee.{{Cite web |language=en |url=https://www.cnbc.com/2024/01/12/morgan-stanley-will-pay-millions-settle-sec-block-trade-probe.html |title=Morgan Stanley will pay $249 million to settle criminal, SEC block trade probes |website=cnbc.com |access-date=2024-03-23 }}

In February 2025, a group of 17 U.S. state attorneys general criticized Morgan Stanley for making improper or inadequate disclosures about investments in China.{{Cite news |date=6 February 2025 |title=Top US asset managers face scrutiny from Republican state AGs over China funds |url=https://www.reuters.com/business/finance/top-us-asset-managers-face-scrutiny-republican-state-ags-over-china-funds-2025-02-06/ |access-date=6 February 2025 |work=Reuters}}

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. Middle East (MENA) Headquarters in Abu Dhabi and Dubai. Other offices operating in the Middle East are located in Riyadh and Qatar.{{cite web|url=https://www.morganstanley.com/about/offices/uk.html |title=Morgan Stanley in the United Kingdom |publisher=Morganstanley.com |access-date=July 9, 2011}}{{cite web|url=https://www.morganstanley.com/about/offices/hk.html |title=Morgan Stanley in Hong Kong |publisher=Morganstanley.com |access-date=July 9, 2011}}

• Dan Ammann, former General Motors President; chief executive officer, Cruise Automation{{Cite news|url=https://www.reuters.com/article/us-autos-gm-selfdriving/gm-president-ammann-will-take-over-cruise-self-driving-car-unit-idUSKCN1NY2EJ|title=GM President Ammann will take over Cruise self-driving car unit|website=Reuters|date=November 29, 2018|language=en-US|access-date=January 2, 2020|last1=White|first1=Joseph}}
• Barton Biggs, author and hedge fund manager
• Erskine Bowles, Clinton White House Chief of Staff
• Richard A. Debs, Chairman of Carnegie Hall; Middle East power-broker
• Bob Diamond, former chief executive officer, Barclays
• Richard B. Fisher, chairman of the board, Rockefeller University and Bard College; member, Trilateral Commission
• William E. Ford, General Atlantic Chairman and CEO
• Eric Gleacher, Founder of Gleacher & Co.
• Nina Godiwalla, author of Suits: A Woman on Wall Street
• Robert F. Greenhill, founder of Greenhill & Co.
• David Grimaldi, Chief Administrative Officer, New Castle County Government
• John Havens, former president, Citigroup, Inc.
• Lindsay Goldberg, pioneering buy-out firm founded by alumni Alan Goldberg and Bob Lindsay in 2001
• Nigel MacEwan, former chief executive officer, Kleinwort Benson North America; former president, Merrill Lynch
• John J. Mack, chairman of the board of New York-Presbyterian Hospital
• Raymond J. McGuire, President, Lazard Ltd.
• Mary Meeker, Kleiner Perkins partner and founder, Bond Capital
• Mitchell M. Merin, financial executive
• Eileen Murray, co-president, Bridgewater Associates
• Fahad Al Mubarak, Governor, Saudi Central Bank
• Thomas R. Nides, United States Ambassador to Israel
• Dr. Ann Olivarius, chair, McAllister Olivarius, trans-Atlantic employment and discrimination lawyer
• Stephen A. Oxman, Assistant Secretary of State; chair, Princeton University Board of Trustees
• Vikram Pandit, former chief executive officer, Citigroup
• Joseph R. Perella, philanthropist; Founder of Perella Weinberg Partners
• Charles E. Phillips, former President of Oracle, Inc.; C.E.O. of Infor
• Ruth Porat, chief financial officer; Alphabet Inc.
• Frank Quattrone, Founder, Qatalyst Group
• Steven Rattner, private equity manager and commentator
• Stephen S. Roach, Yale University professor
• Benjamin M. Rosen, co-founder, Compaq Computer; chairman, California Institute of Technology
• David E. Shaw, hedge fund manager
• Chip Skowron, hedge fund portfolio manager convicted of insider trading
• Bjarne Stroustrup, developer of the C++ programming language{{Cite web|url=https://www.morganstanley.com/profiles/bjarne-stroustrup-managing-director-technology/ |title=Bjarne Stroustrup |publisher=Morgan Stanley|access-date=January 21, 2021}}
• Thomas O. Staggs, COO and CFO Disney
• Charles F. Stewart, Sotheby's CEO
• John J. Studzinski, CBE, American-British investment banker and philanthropist
• Sir David Walker, chairman, Barclays PLC
• Kevin Warsh, G.W. Bush economic advisor; Member, Federal Reserve Board of Governors
• Byron Wien, legendary investment strategist; Blackstone Inc.
• Jon F. Weber – former investment banker

{{Portal|New York City|Companies|Banks}}

• Dean Witter Reynolds
• Discover Card
• MSCI
• Van Kampen Funds
• Metalmark Capital, formerly Morgan Stanley Capital Partners
• Morgan Stanley Smith Barney, a joint venture with Citigroup

{{Reflist|30em}}

{{Refbegin}}

• Chernow, Ron (1990). The House of Morgan.
• Hibbard, J. (January 17, 2005). "Morgan Stanley: No stars—and lots of top tech IPOs". BusinessWeek, 56–58.
• [https://web.archive.org/web/20060427052623/http://www.morganstanley.com/cgi-bin/morganstanley.com/pressroom.cgi?action=load&uid=424 John Mack Elected Chairman and CEO of Morgan Stanley]
• Partnoy, Frank. F.I.A.S.C.O. New York: Penguin Books, 1997.

{{Refend}}

• Patricia Beard (2008). Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley.

• {{Official website|https://www.morganstanley.com}}

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