Information AboutMorgan Stanley |
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| banks of the united states | |
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| companies established in 1935 | |
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Morgan Stanley () is an Investment Bank and Retail Broker provider headquartered in New York City . OVERVIEW Morgan Stanley is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to customers, including corporations, governments, financial institutions and individuals. The Company operates in three business segments: Institutional Securities, Global Wealth Management Group, and Asset Management.http://finance.google.com/finance?q=ms
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Morgan Stanley is a global financial services firm, offering a wide variety of products and services. A partial list of these products and services includes:
Despite offering such a diverse array of services, Morgan Stanley is an industry leader in many areas, particularly equity and debt underwriting and investment banking. The company considers its brand name and reputation as a longtime leading financial firm among its most valuable assets. (See 2005 Annual Report ). HISTORY: MERGERS, ACQUISITIONS, AND DIVESTITURES Morgan Stanley was founded in New York on September 5 1935 , by Henry S. Morgan , and Harold Stanley of J. P. Morgan & Co. along with others from Drexel & Co. This split of the commercial and investment banks came as a result of the Glass-Steagall Act . Within its first year it achieved 24% of market share among public offerings. In 1964, Morgan Stanley created the first viable computer model for financial analysis. By 1971, the Mergers & Acquisitions business was established along with Sales & Trading. In 1986, Morgan Stanley Group, Inc., became publicly listed. In 1996, Morgan Stanley acquired Van Kampen American Capital, a respected mutual fund company. On February 5 1997 , the company merged with Dean Witter, and Discover & Co. (a.k.a. Dean Witter Reynolds ) the spun-off financial services business of Sears Roebuck . The merged company was briefly known as "Morgan Stanley Dean Witter Discover & Co." until 1998 when it was known as "Morgan Stanley Dean Witter & Co." until late 2001. To foster brand recognition and marketing the Dean Witter name was dropped and the firm became "Morgan Stanley". On December 19 2006 , after reporting 4th quarter earnings, Morgan Stanley announced the spinoff of its Discover Card unit. ORGANIZATION Morgan Stanley comprises four main business units:
DIVERSITY AND CULTURE
LEGAL PROCEEDINGS Misleading Financial Analysis was disclosed amongst investment banks in the United Kingdom , but the FSA Financial Services Authority , decided not to intervene. In criminal activity in the US similar to that alleged in the UK, Morgan Stanley was fined $125 million. On July 12 2004 , Morgan Stanley settled a sex discrimination suit brought by the Equal Employment Opportunity Commission for $54 million. On January 12 2005 , The New York Stock Exchange imposed a $19 million fine on Morgan Stanley for alleged regulatory and supervisory lapses. On May 16 2005 , A Florida jury found that Morgan Stanley did in fact fail to give adequate information to Ronald Perelman about Sunbeam thereby defrauding him and causing damages to him of $604 million. To that $604 million was added punitive damages by the jury for a total of compensatory and punitive Damages of $1.450 billion. Morgan Stanley has stated the decision will be Appeal ed and is confident the decision will be overturned. On March 21 2007 , the ruling was overturned and Morgan Stanley was no longer required to pay the 1.57 billion dollar settlementhttp://www.iht.com/articles/ap/2007/03/21/america/NA-FIN-US-Morgan-Stanley-Perelman.php. Morgan Stanley asserts many rulings in the trial were "unprecedented and highly prejudicial rulings imposed by the judge" http://www.cfo.com/article.cfm/4002352?f=ThisWeekInFinance052005. It should be noted that Morgan Stanley lost an estimated $300 million on the Sunbeam collapse, calling into serious question any alleged Motive on the firm's part. From a Business Ethics perspective, it is also questionable whether Morgan Stanley, in its Analyst capacity, was responsible for or even capable of ensuring the accuracy of Sunbeam financial data, which is generally considered the responsibility of internal and external Accounting faculties. More recently, a class action lawsuit was filed in California by both current and former Morgan Stanley employees for unfair labor practices that were instituted to those employed through the financial advisor training program. A $40 million settlement was reportedly reached, with expected payout to those employed through the training program between specified dates. Morgan Stanley is most recently in a case with former employee Louis Rosenwein. Following the collapse of Andrx Corp. Rosenwein sued the company for not allowing him to hedge the stock. The case is taking place in New York City and began in April 2005. Award was rendered by an arbitration panel on 8/15/07 finding denying Claimant's request for relief in the entirety. RECENT DISPUTES (2005) Concerned over lackluster performance, eight former senior Morgan Stanley executives sent a letter to the Board on March 3 2005 requesting immediate replacement of Purcell as CEO . On March 29 , Purcell announced that he would be replacing President Stephan Newhouse, a 26 year Morgan Stanley veteran and former Navy officer, with Zoe Cruz and Steve Crawford, two of Purcell's most recognized supporters. Three days later, the so called “Group of Eight” published a full-page advertisement in the '' Wall Street Journal '' and launched a website publicizing their position. On May 12 , 2005 , dissidents announced a plan to split Morgan Stanley into two firms: one retail (as former Dean Witter) and one institutional firm (as former Morgan Stanley), saying Purcell's plans to merge these two entities had not worked over the past eight years. (See '' New York Times '' article, May 13 2005 .) On June 13 2005 Purcell announced that he would retire as CEO when a successor was found, but no later than March 2006. Former President John Mack was chosen to succeed Purcell and his appointment was made official by the board of directors on June 30 2005 . Mack announced he would forgo the $25 million per year guaranteed him in his rehiring, preferring instead to be paid based on performance. Purcell's exit package was in excess of $113 million. Morgan Stanley has been embroiled in a recent series of high-level defections, including Joe Perella, Tarek Meguid, Vikram Pandit, and John Havens. Perella and Meguid have established a boutique mergers and acquisitions advisory firm in New York while Havens has established a hedge fund with Pandit. AWARDS 2007
Information found at http://www.euromoney.com/article.asp?PositionID=19&ArticleID=1391891 NOTABLE CURRENT AND FORMER EMPLOYEES Business
Politics and public service
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SEE ALSO Competitors
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