Morgan Stanley, founded in 1935, is a global financial services company with over 75,000 employees. It ranks in Fortune 500 and Forbes Global 2000 lists. The firm's main areas of business include institutional securities, wealth management, and investment management.
Morgan Stanley was founded 88 years ago with a passion for helping individuals, families, and institutions achieve their financial goals.
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 the early 1940s, founder Harold Stanley raised $1.5 million for the U.S. Committee for the Care of European Children, marking the firm's commitment to philanthropy.
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 1954, Morgan Stanley managed a $300 million bond issue for General Motors, showcasing its involvement in significant financial transactions.
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 1966, Morgan Stanley established a French subsidiary with the Morgan Guaranty Trust Company to broaden its international operations, marking a significant milestone in its global presence.
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 1984, Morgan Stanley introduced the Trade Analysis Processing System (TAPS) to enhance trade accuracy and volume.
In 1985, Morgan Stanley inaugurated its Fixed Income Division.
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 1995, Morgan Stanley relocated its global headquarters to 1585 Broadway in New York.
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.
In 1999, Morgan Stanley expanded its overseas operations by setting up a joint venture in India with local partner JM Financial.
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.
In July 2004, Morgan Stanley paid NASD a $2.2 million fine for numerous late disclosures of broker information, indicating regulatory violations within the firm.
In September 2004, Morgan Stanley paid a $19 million fine imposed by NYSE for various violations, including failure to deliver prospectuses, inaccurate reporting, and other regulatory shortcomings.
On January 12, 2005, the NYSE imposed a $19 million fine on Morgan Stanley for regulatory and supervisory lapses, marking a significant penalty within the financial industry.
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.
In March 2, 2006, Morgan Stanley settled a class-action lawsuit in California for unfair labor practices, reaching a $42.5 million agreement without admitting fault.
On December 19, 2006, Morgan Stanley announced the spin-off of its Discover Card unit, completing the process on June 30, 2007.
On September 27, 2007, FINRA announced a $12.5 million settlement with Morgan Stanley for failing to provide emails in arbitration proceedings, revealing misconduct within the firm.
On December 19, 2007, Morgan Stanley announced a US$5 billion capital infusion from the China Investment Corporation in exchange for convertible securities.
On June 18, 2008, Morgan Stanley admitted to a £1.4m fine by the Financial Services Authority for failing to control a rogue trader, resulting in a significant financial loss for the firm.
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 was fined $2 million for short interest reporting and rule violations by FINRA for over six years.
Morgan Stanley's first China Summit took place at Rosewood Hotel in Beijing from May 18 to May 20, 2015.
In December 2015, Morgan Stanley announced a reduction of around 25% of its fixed income jobs by the end of the month.
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.
Morgan Stanley Hong Kong Securities Ltd. was fined HK$18.5 million by Hong Kong's Securities and Futures Commission for violations of the Code of Conduct.
The Morgan Stanley 15th Annual Asia Pacific Summit took place at Mandarin Oriental Singapore on November 3, 2016.
Morgan Stanley was fined $13 million for overbilling and violating investor asset safeguarding custody rules.
The 4th annual China Summit organized by Morgan Stanley took place at Rosewood Beijing on May 23-24, 2018.
The Morgan Stanley 17th Annual Asia Pacific Summit was held from November 28 to November 29, 2018 at Mandarin Oriental Singapore. It served as a platform for discussions on economic trends and investment strategies in the Asia Pacific region.
FINRA announced a $10 million fine against Morgan Stanley for failures in its anti-money laundering compliance over a period of five years.
In February 2019, Morgan Stanley announced the acquisition of Solium Capital, a manager of employee stock plans, for $900 million.
The 9th annual investor summit organized by Morgan Stanley in Hong Kong to discuss investment opportunities.
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 May 2020, Morgan Stanley agreed to pay a $5 million penalty to settle allegations by the SEC for providing misleading information to clients in retail wrap fee programs.
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.
In September 2022, the SEC announced charges against Morgan Stanley for failing to protect personal identifying information of approximately 15 million customers, leading to a $35 million settlement.
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.
In January 2024, Morgan Stanley agreed to pay $249 million to settle a criminal investigation and SEC probe related to unauthorized disclosure of block trades to investors.