Morgan Stanley

Morgan Stanley was founded in 1933 with the aim of meeting the financial needs of individuals, families, institutions, and corporations. Over the years, it has become a global leader in the financial services industry, known for its innovation and commitment to serving clients and communities.

In 1935, J.P. Morgan partners Henry S. Morgan and Harold Stanley founded Morgan Stanley with $6.6 million of nonvoting preferred stock from J.P. Morgan partners, after being barred from the securities business for over a year.

Morgan Stanley was established on September 16, 1935, as a partnership with a small staff of 13. In its inaugural year, the firm managed $1.1 billion in public offerings and private placements, capturing a 24% market share.

In 1938, Morgan Stanley played a key role in distributing $100 million of debentures for the United States Steel Corporation as the lead underwriter.

In 1939, Morgan Stanley acted as the lead syndicate for U.S. rail financing.

In 1941, Morgan Stanley liquidated its stock and reorganized to qualify for membership on the New York Stock Exchange (NYSE), which it successfully joined in 1942.

In 1947, Morgan Stanley issued the first bond on behalf of the World Bank to fund post-war reconstruction in Europe.

During the 1950s, Morgan Stanley managed General Motors' $300 million debt issuance, which was the largest securities issue ever underwritten at that time.

In the 1960s, Morgan Stanley pioneered the development of the first computer model to address the growing complexity of financial analysis, marking a significant advancement in the field.

In 1967, Morgan Stanley opened its first international office in Paris, launching Morgan & Cie. International in collaboration with Morgan Guaranty Trust Co. This move was aimed at tapping into the growing European securities market.

In 1970, Morgan Stanley became one of the pioneering global investment banks to set up operations in Japan. This strategic move allowed the firm to expand its reach into the Asian market.

In 1973, Morgan Stanley opened a research department and entered the equity markets full-scale, expanding its services to provide individual investment services to wealthy individuals and smaller institutional investors.

In 1977, Morgan Stanley relocated its international office from Paris to London. This shift marked a significant strategic decision to enhance the firm's presence in the financial hub of London.

In 1986, Morgan Stanley established Morgan Stanley and Co. International Plc, a financial services company operating globally in Europe, the Middle East, Africa, the Americas, and Asia.

In 1988, Morgan Stanley launched the MSCI World Index, the first comprehensive index of equity markets in developing countries.

In 1997, Morgan Stanley merged with Dean Witter Discover & Co., forming the newly merged entity 'Morgan Stanley Dean Witter Discover & Co.' with Philip J. Purcell as chairman and CEO.

In 1998, the firm changed its name to 'Morgan Stanley Dean Witter & Co.' to combine the names of the two predecessor companies and avoid tension.

On September 11, 2001, Rick Rescorla, the vice president of security at Morgan Stanley, led the evacuation of 2,700 employees from the South Tower of the World Trade Center. Tragically, Rick and 12 colleagues lost their lives in the building.

In 2003, Morgan Stanley agreed to pay $125 million as part of a $1.4 billion settlement with multiple entities, including Eliot Spitzer, the Attorney General of New York, and the SEC, over misleading research practices to win investment banking business.

On May 16, 2005, a Florida jury found Morgan Stanley guilty of defrauding Ronald Perelman regarding Sunbeam, resulting in a $604 million damages verdict, which was later overturned in 2007.

On December 19, 2006, Morgan Stanley announced the spin-off of its Discover Card unit, completing the process on June 30, 2007.

On December 19, 2007, Morgan Stanley announced a US$5 billion capital infusion from the China Investment Corporation in exchange for convertible securities.

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 mentioned the market was controlled by fear and rumors.

By September 19, 2008, Morgan Stanley's share price had slid 57% in four days, leading the company to explore merger possibilities with various banks like CITIC, Wachovia, HSBC, and others.

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. The payment was made via a physical check due to the urgency of the situation.

Morgan Stanley's stock price experienced a dramatic fall in October 2008 due to concerns over the completion of the Mitsubishi deal. It recovered once Mitsubishi UFJ's 21% stake in Morgan Stanley was completed on October 14, 2008.

On January 13, 2009, the Global Wealth Management Group merged with Citi's Smith Barney to form Morgan Stanley Smith Barney, with Morgan Stanley owning 51% and Citi holding 49%.

On May 31, 2012, Morgan Stanley exercised its option to buy an additional 14% stake in the joint venture with Citi, increasing its ownership.

Morgan Stanley agreed to pay $4.8 million in fines to settle a price-fixing scandal that had cost New Yorkers $300 million. The Justice Department hoped this would send a message to the banking industry.

In June 2013, Morgan Stanley announced securing regulatory approvals to buy Citigroup's remaining 35% stake in Smith Barney, finalizing the deal.

In November 2013, Morgan Stanley announced a $1 billion investment to improve affordable housing as part of its broader initiative to support economic, social, and environmental sustainability.

In July 2014, Morgan Stanley's Asian private equity arm raised around $1.7 billion for its fourth fund, focusing on investments in the Asian region.

Morgan Stanley agreed to pay $3.2 billion to settle with state and federal authorities over the creation of mortgage-backed bonds before the financial crisis.

The 4th annual China Summit organized by Morgan Stanley took place at Rosewood Beijing on May 23-24, 2018.

In February 2019, Morgan Stanley announced the acquisition of Solium Capital, a manager of employee stock plans, for $900 million.

Morgan Stanley agreed to pay $150 million to settle charges of misleading California public pension funds about the risks of mortgage-backed securities.

The 5th Annual China Summit organized by Morgan Stanley took place at Rosewood Beijing on May 23, 2019.

Morgan Stanley fired or placed on leave four traders for suspected securities mismarking, concealing $100–140 million in losses.

In October 2020, Morgan Stanley completed the acquisition of E*Trade for $13 billion, marking the largest acquisition by a U.S. bank since the global financial crisis.

In March 2021, Morgan Stanley completed its acquisition of Eaton Vance, adding $5.4 trillion of client assets across its Wealth Management and Investment Management segments.

On May 2, 2023, Morgan Stanley outlined plans to reduce approximately 3,000 positions by the end of June, constituting about 5% of the bank's overall workforce.