Morgan Stanley

Type Public (NYSE: MS)

Founded 1935

Headquarters New York, New York

Key people John J. Mack, Chairman & CEO

David Heleniak, Vice Chairman

Zoe Cruz, Co-President,

Robert Scully Co-President,

James P. Gorman COO GWM

Industry Investment services

Products Financial Services

Investment Banking

Investment management

Revenue $76.551 billion USD (2006)

Employees over 55,000(Jun 2007)

Slogan World Wise

Website www.morganstanley.com

Morgan Stanley (NYSE: MS) is one of the largest and the most reputed investment banks headquartered in New York City. Contents

1 Overview

2 History: mergers, acquisitions, and divestitures

3 Organization 4 Diversity and culture

5 Legal proceedings

6 FINRA fine for bond sales

7 FINRA fine for e-mails

8 Awards

9 2007

10 Notable current and former employees

10.1 Business

10.2 Politics and public service

10.3 Other

11 See also

11.1 Competitors

12 References

13 External links

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.[1]

Institutional Securities includes capital raising; financial advisory services, including advice on mergers and acquisitions, restructurings, real estate and project finance; corporate lending; sales, trading, financing and market-making activities in equity securities and related products and fixed income securities and related products, including foreign exchange and commodities; benchmark indices and risk management analytics; research; and investment activities. Morgan Stanley's office on Times Square

Global Wealth Management Group provides brokerage and investment advisory services; financial and wealth planning services; annuity and insurance products; credit and other lending products; banking and cash management services; retirement services, and trust and fiduciary services. Global Wealth Management Group serves individual investors and small-to-medium size businesses and institutions with an emphasis on high-net-worth investors. It provides clients with an array of financial solutions comprising Morgan Stanley's products and services, as well as products and services from third-party providers, such as insurance companies and mutual fund families. The Company offers brokerage and investment advisory services covering various investment alternatives, including equities, options, fixed income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts and mutual fund asset allocation programs. Its financial and wealth planning services offered include education savings programs, as well as annuity and insurance products, including life, disability and long-term care insurance.

Asset Management provides global asset management products and services in equity, fixed income, alternative investments 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 are principally conducted under the Morgan Stanley and Van Kampen brands. 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. Products and services are available to institutional investors primarily through separate accounts, United States mutual funds and other pooled vehicles. Morgan Stanley Investment Management also sub-advises funds for various unaffiliated financial institutions and intermediaries. Morgan Stanley offers open-end funds and separately managed accounts to individual investors through affiliated and unaffiliated broker dealers, banks, insurance companies and financial planners. Closed-end funds managed by Morgan Stanley or Van Kampen are available to individual investors through affiliated and unaffiliated broker dealers.

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:

Investment banking services such as advising, securities underwriting

Institutional sales and trading, including both equity and fixed income investments

Research services

Individual investor services such as private wealth management and financial and estate planning

Traditional investments such as mutual funds , unit investment trusts and separately managed accounts

Alternative investments such as hedge funds, managed futures, and real estate

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:

Institutional Securities

Global Wealth Management Group

Investment Management

Credit Services

Diversity and culture

Morgan Stanley was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.

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 list[2]

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[3]

Morgan Stanley has a strong commitment to equal rights for gay, bisexual and transgendered people - recently demonstrated by sponsoring the Mayor's Reception at London's EuroPride 2006 Festival

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 appealed 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 settlement[4]. Morgan Stanley asserts many rulings in the trial were "unprecedented and highly prejudicial rulings imposed by the judge" [5]. 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. [citation needed]

FINRA fine for bond sales

On Aug. 2, 2007, the Financial Industry Regulatory Authority (FINRA) announced more than $6 million in fines and restitution against Morgan Stanley for rule violations related to the sale of corporate bonds to retail customers at excessive prices. The firm was cited for charging excessive mark-ups in more than 2,800 transactions and for having an inadequate supervisory system for monitoring the pricing of corporate fixed income securities sold to customers.[6]

FINRA fine for e-mails

On Sept. 27, 2007, FINRA announced a $12.5 million settlement with Morgan Stanley to resolve charges that the firm's former affiliate, Morgan Stanley DW, Inc. (MSDW), failed on numerous occasions to provide e-mails to claimants in arbitration proceedings as well as to regulators - while representing that the destruction of the firm's email servers in the Sept. 11, 2001 terrorist attacks on New York's World Trade Center resulted in the loss of all pre-9/11 e-mail. In fact, the firm had millions of pre-9/11 e-mails that had been restored to the firm's active e-mail system using back-up tapes that had been stored in another location.[7]

Awards

2007

Financial Times' International Prime Brokerage House of the Year 2005, 2006 and 2007

Euromoney Best Prime Brokerage House 2007

BusinessWeek #1 Prime Brokerage House 2006 and 2007 Euromoney's Global Investment Bank of the Year

Financial Times Number 3 Best Place to Work in the UK

Newsweek Most Prestigious Global Investment Bank of the Year 2007

Best Investment Bank – Spain

Best Investment Bank – Luxemburg

Best Investment Bank – Taiwan

Best M&A House – UK

Best M&A House – Denmark

Best M&A House – Nordic and Baltic region

Best M&A House – Singapore

Best M&A House – Hong Kong

Best Debt House – China

Best Debt House – Singapore

Best Debt House – Colombia

Best Project Finance House in Latin America

Information found at http://www.euromoney.com/article.asp?PositionID=19&ArticleID=1391891

Notable current and former employees

Business

Barton Biggs - hedge fund manager

Shelby Bryan - communications executive, best known for affair with Anna Wintour

Vikram Chatwal - hotelier David Darst - chief investment strategist PWM

Robert Diamond - president of Barclays plc

Robert Greenhill - founder of Greenhill & Co.

Todd Harrison - founder of Minyanville

Robert Matschullat - private equity investor

Mary Meeker - financial analyst

Joseph R. Perella - co-founder of Perella Weinberg Partners

Frank Quattrone - investment banking

James A. Runde - investment banking

Charles Phillips - president of Oracle Corporation

Steven Rattner - private equity investor

Leopold David de Rothschild - financier

Ali Sabancı - Turkish businessman

David E. Shaw - founder of D. E. Shaw & Co.

Marina Fedorovsky

Zoe Cruz - President of Institutional Securities

Politics and public service

Robert H. B. Baldwin - Undersecretary of the U.S. Navy

Erskine Bowles - White House Chief of Staff (1996-97), U.S. Senatorial candidate

Evan G. Galbraith - U.S. Ambassador to France (1981-85)

Jeremy Heywood - Principal Private Secretary to the Prime Minister (1999-2003)

Mickey Kantor - U.S. Secretary of Commerce (1996-97)

Philip Lader - U.S. Ambassador to the United Kingdom (1997-2001)

Francis Maude - Member of the British Parliament (1983-1992, 1997-present) Jyotiraditya Scindia - Member of the Lok Sabha (2002-present)

Kevin Warsh - member of the Board of Governors for the U.S. Federal Reserve System (2006-present)

Other

Stephen Frey - author

Nathan Haselbauer - founder of International High IQ Society

Nigel Jaquiss - journalist

Andy Kessler - author

David Grimaldi - advisor

Daniel Lian - economist

John Myung - poker player

James Parrish - professional football player

Rick Rescorla - former U.S. Army officer who helped in the September 11th evacuation efforts

Joshua Schachter - creator of del.icio.us

Jamie Smith - professional UK athlete and alumni of Royal Holloway.