Morgan Stanley

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Morgan Stanley
Type	Public (NYSE: MS)
Founded	1935
Headquarters	New York, New York
Key people	John J. Mack, Chairman & CEO David Heleniak, Vice Chairman Walid Chammah Co-President, James P. Gorman Co-President
Industry	Investment services
Products	Financial Services Investment Banking Investment management
Revenue	US$ 85.328 billion (2007)[1]
Net income	US$ 3.209 billion (2007)[2]
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 reputable investment banks and global financial services firm that serves a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley's world headquarter is in New York City^[3], with regional headquarters in London^[4] and Hong Kong^[5].

Contents 1 Overview 2 History: mergers, acquisitions, and divestitures 3 Organization 4 Diversity and culture 5 Legal proceedings 5.1 FINRA fine for e-mails 6 Awards 6.1 2007 7 Notable current and former employees 7.1 Business 7.2 Politics and public service 7.3 Other 8 See also 9 References 10 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.^[6]

• 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.

• 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.
• 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.

Morgan Stanley is a world leader in financial services, 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 51935, by Henry S. Morgan, and Harold Stanley of J. P. Morgan & Co. along with others from JP Morgan & 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 51997, 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 192006, after reporting 4th quarter earnings, Morgan Stanley announced the spinoff of its Discover Card unit. On December 192007, Morgan Stanley announced 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.^[7].

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^[8]
• 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^[9]
• 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 122004, Morgan Stanley settled a sex discrimination suit brought by the Equal Employment Opportunity Commission for $54 million. On January 122005, The New York Stock Exchange imposed a $19 million fine on Morgan Stanley for alleged regulatory and supervisory lapses. On May 162005, 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 212007, the ruling was overturned and Morgan Stanley was no longer required to pay the 1.57 billion dollar settlement^[10]. Morgan Stanley asserts many rulings in the trial were "unprecedented and highly prejudicial rulings imposed by the judge" ^[11]. 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.

FINRA fine for e-mails

On September 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.^[12]

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
• Vikram Pandit - CEO of Citigroup

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)
• Jan Stenbeck - Swedish entrepreneur

Other

• Amisha Patel - Leading Bollywood Actress
• 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.

See also

• Morgan Stanley Capital International (MSCI)
• Discover Card
• Van Kampen Funds

•  • e List of investment banks

ABN AMRO • Banc of America Securities • Barclays Capital • Bear Stearns • BNP Paribas • Citigroup • Credit Suisse • Deutsche Bank • Dresdner Kleinwort • Goldman Sachs  • Greenhill  • Hovde  • HSBC • JPMorgan Chase • JP Turner & Company  • Lazard • Lehman Brothers  • Macquarie Bank • Merrill Lynch • Morgan Stanley • Nomura Securities  • Raymond James  • Rothschild • RBC Capital Markets  • Thomas Weisel Partners  • UBS  • Veber Partners, LLC  • Wachovia

References

External links

• Morgan Stanley Homepage