Morgan Stanley is a multinational investment bank and an American financial services company headquartered in 1585 Broadway at Morgan Stanley Building, Midtown Manhattan, New York City. With offices in over 42 countries and over 55,000 employees, corporate clients include companies, governments, institutions and individuals.
Morgan Stanley original, formed by J.P. Morgan & amp; Co partner Henry Sturgis Morgan (granddaughter of J.P. Morgan), Harold Stanley and others, appeared on September 16, 1935, in response to the Glass-Steagall Act which required the separation of commercial business and investment banking. In the first year, the company operates with a market share of 24% (US $ 1.1 billion) in public offerings and private placements.
Morgan Stanley is currently the result of the original Morgan Stanley merger with Dean Witter Discover & amp; Co. in 1997. Chairman and CEO of Dean Witter, Philip J. Purcell, became Chairman and CEO of the joint venture company "Morgan Stanley Dean Witter Discover & amp; Co." Finally, the new company changed its name back to "Morgan Stanley" in 2001. The main areas of business for companies today are institutional securities, wealth management and investment management.
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Overview
Morgan Stanley is a financial services company that, through its subsidiaries and affiliates, advises, and initiates, trades, manages and distributes capital to governments, institutions and individuals. The Company operates in three business segments: Institutional Securities, Wealth Management, and Investment Management.
Maps Morgan Stanley
History
Original Morgan Stanley (1935-1997)
Morgan Stanley traces its roots in the history of J.P. Morgan & amp; Co. Following the Glass-Steagall Act, it is no longer possible for companies to have investment banking and commercial banking businesses under one parent entity. J.P. Morgan & amp; Co chose a commercial banking business for investment banking business. As a result, some J.P. employees Morgan & amp; Co., notably Henry S. Morgan and Harold Stanley, left J.P. Morgan & amp; Co and joined several others from Drexel's partners to form Morgan Stanley. The company officially opened its doors for business on September 16, 1935, on 19th Floor, 2nd Wall Street, New York City. In the first year, he accounted for 24% market share (US $ 1.1 billion) between public offerings. The Company is involved with the distribution of 1938 US $ 100 million bonds to the United States Steel Company as the primary insurer. The company also gained distinction as a major syndicate in US railway financing in 1939. The company underwent a major reorganization in 1941 to allow for more activity in its securities business.
The company is headed by Perry Hall, the last founder to lead Morgan Stanley, from 1951 to 1961. During this period the company co-managed with the offer of triple-A-rated bonds worth US $ 50 million in 1952, and came with US $ 300 million debt General Motors, IBM's 231 million US stock offering, and AT & amp's debt offerings $ 250 million.
Morgan Stanley defined himself by creating the first appropriate computer model for financial analysis in 1962, thus starting a new trend in the field of financial analysis. Future president and chairman Dick Fisher contributed to computer models as young employees, learning FORTRAN and COBOL programming languages ​​at IBM. In 1967 founded Morgan & amp; Cie, International in Paris in an attempt to enter the European securities market. It acquired Brooks, Harvey & amp; Co., Inc. in 1967 and established a presence in the real estate business. In 1971, the company has established Mergers & amp; Business acquisition together with Sales & amp; Trading. Business sales and trading is believed to be Bob Baldwin's idea.
In 1996 Morgan Stanley acquired Van Kampen American Capital.
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On February 5, 1997 the company merged with Dean Witter Discover & amp; Co., a spun off financial services business from Sears Roebuck. Dean Witter's Chief and CEO, Philip J. Purcell, continues to play the same role in "Morgan Stanley Dean Witter Discover & amp; Co." who just joined. Initially, the new company's name was chosen to be a combination of the names of the two predecessor companies to avoid tension between executives of both companies. In 1998, the company name was changed to "Morgan Stanley Dean Witter & Co.". Finally in 2001 "Dean Witter" was further dropped and the name became "Morgan Stanley" for unspeakable reasons, although in the 1990s the new company spent much effort to defend the image of its founder "Dean G. Witter".
Morgan Stanley has offices located on 24 floors in buildings 2 and 5 of the World Trade Center in New York City. These offices have been inherited from Dean Witter who occupied that space since the mid-1980s. The company lost thirteen employees during the September 11, 2001 attacks (Thomas F. Swift, Wesley Mercer, Jennifer de Jesus, Joseph DiPilato, Nolbert Salomon, Godwin Forde, Steve R. Strauss, Lindsay C. Herkness, Albert Joseph, Jorge Velazquez, Titus Davidson , Charles Laurencin and Security Director Rick Rescorla) in the tower, while 2,687 were successfully evacuated by Rick Rescorla. The surviving employees moved to the temporary headquarters in the vicinity. In 2005 Morgan Stanley moved its 2,300 employees back to Manhattan, at which point it was the biggest step.
Morgan Stanley has long played a dominant role in technology investment banking and, in addition to Apple and Facebook, serves as the top guarantor for many of the largest global technology IPOs, including: Netscape, Cisco, Compaq, Broadcast.com, Broadcom Corp., VeriSign, Inc., Cogent , Inc., Dolby Laboratories, Priceline, Salesforce, Brocade, Google, and Groupon. In 2004, the company led the Google IPO, the largest Internet IPO in US history. In the same year Morgan Stanley acquired the Canary Wharf Group.
The company found itself in the midst of a management crisis beginning in March 2005 which resulted in the loss of a number of company staff. Purcell resigned as CEO of Morgan Stanley in June 2005 when a massive public campaign against him by former Morgan Stanley partner threatened to disrupt and damage the company and challenge his refusal to leverage aggressively, increase risk, enter sub-prime mortgage business and make acquisitions costly, the same strategy that forced Morgan Stanley into a massive write-down, linked to the subprime mortgage crisis, in 2007.
On December 19, 2006, after reporting fourth-quarter earnings, Morgan Stanley announced the spin-off of its Discover Card unit. The Bank completed its Discover Financial spin-off on June 30, 2007.
To cope with the decline during the subprime mortgage crisis, Morgan Stanley announced on December 19, 2007 that it will receive a 5 billion dollar capital infusion from China Investment Corporation in exchange for securities to be converted to 9.9% of its shares in 2010.
The Process Driven Unit Trading banks are among some on Wall Street caught in short pressure, reportedly losing nearly $ 300 million in one day. One of the stocks involved in this extortion, Beazer Homes USA, is a component of a real estate bubble that then inflates. The ensuing bubble collapse is considered a key feature of the 2007-2010 financial crisis.
The bank was contracted by the US Treasury Department in August 2008 to advise the government on potential rescue strategies for Fannie Mae and Freddie Mac.
Morgan Stanley is said to have lost more than 80% of its market value between 2007 and 2008 during the financial crisis.
On September 17, 2008, the evening news analysis program Newsnight reported that Morgan Stanley faced difficulties after a 42% slide in its share price. CEO John J. Mack wrote in a memo to the staff "we are in the midst of a market controlled by fear and rumors and short sellers are moving our inventory." The company is said to have explored the possibility of mergers with CITIC, Wachovia, HSBC, Standard Chartered, Banco Santander and Nomura. At one point, Hank Paulson offered Morgan Stanley to JPMorgan Chase at no cost, but Jamie Dimon declined the offer.
Morgan Stanley and Goldman Sachs, the last two major investment banks in the US, both announced on Sept. 22, 2008 that they will become the traditional bank holding company governed by the Federal Reserve. Federal Reserve approval of their bid to become bank ended securities holdings, 75 years after Congress separated them from lenders, and ended a week of turmoil that left Lehman Brothers Holdings Inc. went bankrupt and caused a hasty sale. Merrill Lynch & amp; Co to Bank of America Corp.
Mitsubishi UFJ Financial Group, Japan's largest bank, invested $ 9 billion in Morgan Stanley on September 29, 2008. It is the largest physical checks signed, sent and cashed. Concerns over the completion of the Mitsubishi deal during the October 2008 stock market volatility caused a dramatic decline in Morgan Stanley's stock price to levels last seen in 1994. It recovered after 21% of Mitsubishi UFJ's shares at Morgan Stanley finished on October 14, 2008.
Morgan Stanley borrowed $ 107.3 billion from the Fed during the 2008 crisis, the majority of banks, according to data compiled by Bloomberg News Service and published Aug. 22, 2011.
In 2009, Morgan Stanley bought Smith Barney from Citigroup and a new broker-dealer operating under the name Morgan Stanley Smith Barney, the world's largest wealth management business.
In November 2013, Morgan Stanley announced that it would invest $ 1 billion to help boost affordable housing as part of a broader drive to encourage investment in efforts that help economic, social and environmental sustainability.
In July 2014, Asia's private equity branch Morgan Stanley announced it had raised about $ 1.7 billion for its fourth fund in the area.
In December 2015, it was reported that Morgan Stanley would cut about 25 percent of its fixed income jobs. In January 2016, the company reported that it has offices in more than 43 countries.
Organization
Morgan Stanley divides its business into three business units. As listed below:
Institutional Goods Group
Morgan Stanley Institutional Securities has been the most profitable business segment for Morgan Stanley in recent times. This business segment provides agencies with services such as capital improvements and financial consulting services including mergers and acquisitions acquisitions, restructuring, real estate and project finance, and corporate loans. This segment also includes the Company's Equity and Fixed Income Division; trading is anticipated to maintain its position as a "engine room" of the company. Among the major US banks, Morgan Stanley sources the highest revenue share of fixed income guaranteed reported 6.0% of total revenue in FY12.
Wealth Management
The Global Wealth Management Group provides brokerage and investment consulting services. In 2014 Q2 this segment has reported an annual increase of 21 percent in pre-tax revenues. This segment provides financial and wealth planning services to its clients who are essentially highly valued individuals.
On January 13, 2009, the Global Wealth Management Group joined Smith Barney Citi to form a joint venture of Morgan Stanley Smith Barney. Morgan Stanley holds 51% of the entity, and Citi holds 49%. On May 31, 2012, Morgan Stanley plans to buy an additional 14% of the joint venture from Citi. In June 2013, Morgan Stanley said it had obtained all regulatory approvals to buy a 35% stake in Citigroup at Smith Barney and will continue to finalize the deal.
Investment Management
Investment Management provides asset management products and services in equity, fixed income, alternative investments, real estate investments, and private equity for institutional and retail clients through third-party retail channels, intermediaries and institutional distribution channels Morgan Stanley. The asset management activities of Morgan Stanley are principally carried out under the brands of Morgan Stanley and Van Kampen until 2009.
On October 19, 2009, Morgan Stanley announced it would sell Van Kampen to Invesco for $ 1.5 billion, but would retain the Morgan Stanley brand. It provides asset management products and services to institutional investors worldwide, including pension programs, corporations, private funds, nonprofit organizations, foundations, endowments, government agencies, insurance companies and banks.
On September 29, 2013, Morgan Stanley announced a partnership with Longchamp Asset Management, a France-based asset manager specializing in UCITS hedge fund distribution, and La Franç§aise AM, a multi-specialty asset manager with 10 years track record in alternative investments.
Magazine ranking and popularity
- Morgan Stanley was selected as one of the 100 Best Mother Works Companies in 2004 by Working Mothers magazine.
- Family Digest magazine named Morgan Stanley one of the "Best Companies for African Americans" in June 2004
- The 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 chose Morgan Stanley as one of the "100 Companies Providing the Most Opportunities for Hispanics" in February 2004
- Morgan Stanley is listed on The Times Top 100 Graduate Entrepreneur , recently out of the top 40
- The Times enrolled Morgan Stanley 5th on the list of Top 20 Best Companies for Work 2006
- The Excellent Workplace of the Japanese Institute in 2007 put Morgan Stanley as the second best company working in Japan, based on employees' opinions and corporate culture
Controversies and lawsuits
2003
In 2003, Morgan Stanley agreed to pay $ 125 million to complete its share of the $ 1.4 billion completion brought by Eliot Spitzer, the New York Attorney General, the National Association of Securities Dealers (now the Financial Industry Regulatory Authority (FINRA), the Securities Commission and the US Securities Exchange (SEC) and a number of state securities regulators, deals with deliberately misleading research motivated by the desire to win the investment banking business with the companies covered.
2004
In June 2004, the New York Stock Exchange (NYSE) enacted a $ 140,000 censure penalty and a penalty for using a customer's marginal securities as collateral for a cash management loan.
Morgan Stanley established a sex discrimination suit brought by the Commission for Cooperative Opportunities of $ 54 million on July 12, 2004. In 2007, the company agreed to pay $ 46 million to settle a class action suit filed by eight female brokers.
In July 2004, the company paid NASD a $ 2.2 million penalty for more than 1,800 final disclosures of reportable information about its broker.
In September 2004, the company paid a $ 19 million penalty imposed by the NYSE for failure to provide prospectus to customers in registered offerings, inaccurate reporting of certain program trading information, short sales offenses, failures to new employee fingerprints and failure to form timely file exchanges.
In December 2004, the company paid $ 100,000 to the NASD and paid $ 211,510 in damages to customers for failing to make appropriate disclosures to local bond investors. In the NASD investigation process, Morgan Stanley's failure made timely responses to requests for information that resulted in criticism and additional fines of $ 25,000.
2005
The New York Stock Exchange imposed a $ 19 million fine on January 12, 2005 for alleged violations of regulations and oversight. At that time, it was the largest fine ever imposed by the New York Stock Exchange.
On May 16, 2005, a Florida jury found that Morgan Stanley failed to provide Ronald Perelman with sufficient information about Sunbeam thus deceiving himself and causing a loss of $ 604 million. In addition, additional compensation was added for a total loss of $ 1,450 billion. The verdict was directed by a judge as a sanction against Morgan Stanley after a company lawyer angered the court by failing and refusing to produce the document, and mistakenly told the court that certain documents did not exist. The decision was canceled on March 21, 2007 and Morgan Stanley is no longer required to pay $ 1.57 billion in decisions.
2006
Morgan Stanley completed a class action lawsuit on March 2, 2006. It was filed in California by current and previous Morgan Stanley employees for unfair work practices instituted to them in a financial advisory training program. Program employees have claimed the company that trainees expected for overtime hours without additional pay and handled various administrative costs as a result of their expected task. A $ 42.5 million settlement was reached and Morgan Stanley admitted there was no mistake.
In May the company agreed to pay a $ 15 million fine. The Securities and Exchange Commission accused the company of deleting emails and failed to cooperate with SEC investigators.
On September 25, 2009, Citigroup Inc. filed a federal lawsuit against Morgan Stanley, claiming his rival failed to pay $ 245 million due to a credit default swap agreement. The contract infringement suit was filed in Manhattan federal court and sought unspecified damage.
2007
The Financial Industry Regulatory Authority (FINRA) announced a $ 12.5 million settlement with Morgan Stanley on September 27, 2007. It decided that its former affiliate, Morgan Stanley DW, Inc. (MSDW), failed on various occasions to provide email to the claimant in the arbitration process as well as the regulator. The company has claimed that the destruction of corporate email servers in the September 11, 2001 terrorist attacks at the World Trade Center in New York resulted in the loss of all emails before that date. In fact, the company had millions of emails previously retrieved from backup copies stored in other locations that were not destroyed in the attack. Customers who have lost their arbitration cases against Morgan Stanley DW Inc. because of their inability to get this email to show mistakes Morgan Stanley received the token amount of money as a result of the settlement.
In July 2007, Morgan Stanley agreed to pay $ 4.4 million to settle a class action lawsuit. The company was accused of charging the wrong cost to clients for the storage of precious metals.
In August 2007, Morgan Stanley was fined $ 1.5 million and paid $ 4.6 million in damages to customers associated with an excessive mark-up in 2,800 transactions. An employee is charged $ 40,000 and suspended for 15 days.
2008
Under the settlement with New York Attorney General Andrew M. Cuomo, the company agreed to buy back securities securities worth $ 4.5 billion. The company was accused of misinterpreting the effect of auction rates on their sales and marketing.
2009
In March 2009, FINRA announced Morgan Stanley had to pay more than $ 7 million for errors in handling the retired Rochester, NY-area account.
In May 2009, a merchant in the company was suspended by the FSA for a series of illegal commodity trades entering after a hangover for three and a half hours of lunch. A week later, other merchants in the company were banned for deliberately harming clients by trading 'pre-hedging' without their consent.
The Financial Services Authority fined the company Ã, Â £ 1.4 million for failing to use the controls associated with the actions of a rogue trader at one of his trading desks. Morgan Stanley admitted on June 18, 2008 this resulted in a loss of $ 120 million for the company.
Director of Morgan Stanley, Du Jun, was found guilty of insider trading after a criminal trial in Hong Kong. Du is accused of buying 26.7 million shares of Citic Resource Holdings when it has confidential information about the company. He obtained this information as part of Morgan Stanley's team working with the company on bond issuance and oilfield purchases in Kazakhstan. Morgan Stanley's compliance department was criticized for failing to detect Mr. Il's illegal trade. Du.
2010
In April, the Commodity Futures Trading Commission announced the company agreed to pay $ 14 million related to efforts to hide illegal trade activity in oil futures.
2011
A Morgan Stanley merchant is banned from the brokerage industry and fined for entering a fake trade to fool a company's risk management system that causes millions of people to lose.
The Justice Department is seeking a $ 4.8 million fine from Morgan Stanley for its part in an electricity pricing scandal. Con Edison estimates that the crime cost the consumers of New York state about $ 300 million. Morgan Stanley generated revenues of $ 21.6 million from fraud.
2012
On April 3, the Federal Reserve announced Orders Agreement against the company "a pattern of violations and omissions in mortgage lending services for housing and foreclosure proceedings." The consent order requires the company to review the foreclosure process undertaken by the company. The company will also be liable for monetary sanctions.
Garth R. Peterson, one of Morgan Stanley's top real estate executives in China pleaded guilty on April 25 to violate US federal anti-corruption laws. He was charged with secretly obtaining millions of property investments for himself and Chinese government officials. The official directed the business to Morgan Stanley.
Morgan Stanley was fined $ 55,000 by Nasdaq OMX for three separate violations of the exchange rules. Morgan Stanley's client algorithm starts buying and selling large volumes with errors. Furthermore, once the exchange detects an error, they can not contact the responsible employee. Morgan Stanley completed the claim from FINRA and paid the restitution together totaling nearly $ 2.4 million. Morgan Stanley is accused of not properly supervising and training financial advisors in the use of non-traditional ETF products. This results in inappropriate recommendations for some retail brokerage customers.
Morgan Stanley faces lawsuits and government investigations surrounding Facebook's IPO. Claimed that Morgan Stanley lowered their earnings forecast for the company during an IPO road show. Allegedly, they provide this information only to a handful of institutional investors. "The allegations, if true, are a matter of regulatory concern" for FINRA and SEC according to FINRA Chairman Richard Ketchum.
Morgan Stanley agreed to pay a $ 5 million fine to the Commodity Futures Trading Commission and an additional $ 1.75 million for the CME and Chicago Board of Trade. Morgan Stanley employees incorrectly executed fictitious sales in Eurodollar and Treasury Note futures contracts.
On August 7, 2012, it was announced that Morgan Stanley had to pay a $ 4.8 million fine to settle the pricing scandal, which is estimated to have cost $ 300 million to date. Morgan Stanley does not currently admit any wrongdoing; However, the Justice Department commented that they hoped it would "send a message to the banking industry".
2014
In February, Morgan Stanley agreed to pay $ 1.25 billion to the US government, as a punishment for hiding full risk associated with mortgage securities with the Federal Housing Finance Agency.
In September 2014, Morgan Stanley agreed to pay $ 95 million to settle the lawsuit filed by the Mississippi Public Employees Pension System (MissPERS) and the West Virginia Investment Management Board. Morgan Stanley is accused of misleading investors in mortgage-backed securities.
2015
In May 2015, Morgan Stanley was fined $ 2 million for short-term interest reporting and rule violations for over six years, by the Financial Industry Regulatory Authority.
In June 2015, the Financial Industry Regulatory Authority announced that it fined Morgan Stanley Smith Barney, LLC (Morgan Stanley) $ 650,000 for failing to implement a reasonable oversight system to monitor customer funds transfer to third party accounts.
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In February 2016, Morgan Stanley will pay $ 3.2 billion to settle with state and federal authorities over the creation of Morgan-backed mortgage bonds before the financial crisis.
In August 2016, Morgan Stanley Hong Kong Securities Ltd. was fined HK $ 18.5 million ($ 2.4 million) by Hong Kong Securities and Futures Commission securities regulator for a violation of the Hong Kong Code of Conduct. Included is Morgan Stanley's failure to avoid a conflict of interest between principal and agent trade.
December 2016, another unit of Morgan Stanley pays $ 7.5 million to settle violations of customer protection rules.
2017
In January 2017, the company was fined $ 13 million for overbilling and violating the rules of investor asset protection. Morgan Stanley agreed to pay the fine without commenting on the allegations.
List of officers and directors
Operating Committee
- James P. Gorman : Chairman and Chief Executive Officer
- Jeff Brodsky : Head of Human Resources
- Mark Eichorn : Head of Global Banking Investment
- Eric Grossman : Chief Legal Officer
- Keishi Hotsuki : Chief Risk Officer
- Colm Kelleher : President
- Sam Kellie-Smith : Head of Global Fixed Income
- Thomas Nides : Vice Chairman
- Shelley O'Connor : Joint Chiefs of Wealth Management
- Franck Petitgas : Head of Global Banking Investment
- Ted Pick : Head of Sales and Global Trade
- Jonathan Pruzan : Chief Financial Officer
- Andy Saperstein : Joint Chiefs of Wealth Management
- And Simkowitz : Head of Investment Management
- Clare Woodman : Global Chief Operating Officer for Institutional Securities
Board of directors
- James P. Gorman
- Erskine B. Bowles
- Alistair Darling
- Thomas H. Glocer
- Robert H. Herz
- Nobuyuki Hirano
- Jami Miscik
- Dennis M. Nally
- Hutham S. Olayan
- James W. Owens
- Ryosuke Tamakoshi
- Perry M. Traquina
- Rayford Wilkins, Jr.
Global and other headquarters
The world headquarters of Morgan Stanley is located in New York City, European headquarters are in London and Asia Pacific headquarters are in Hong Kong and Tokyo.
Famous Alumni
- And Ammann, President of the General Motors Company
- Barton Biggs, Author and Hedge Fund Manager
- Erskine Bowles, Clinton White House Chief of Staff
- Richard A. Debs, Chairman of Carnegie Hall; Power-broker Middle East
- Bob Diamond, former Chief Executive Officer, Barclays
- Richard B. Fisher, Chairman of the Board, Rockefeller University, and Bard College; members, Trilateral Commission
- Ben Fried, Google CIO
- Eric Gleacher, Founder of Gleacher & amp; Co.
- Nina Godiwalla, Writer Suits: A Woman on Wall Street
- David Grimaldi, Chief Administrative Officer, New Castle County Government
- John Havens, former President, Citigroup, Inc.
- John J. Mack, Chairman of the Board of New York-Presbyterian Hospitals
- Mary Meeker, Author and Venture Capitalist
- Eileen Murray, Co-President, Bridgewater Associates
- Stephen A. Oxman, Assistant Secretary of State; Chairman, Princeton Board of Supervisors
- Vikram Pandit, former Chief Executive Officer, Citigroup
- Joseph R. Perella, philanthropist; Founder of Perella Weinberg Partners
- Charles E. Phillips, former President of Oracle, Inc.; C.E.O. from Infor
- Ruth Porat, Chief Financial Officer; Alphabet Inc.
- Frank Quattrone, Founder, Qatalyst Group
- Steven Rattner, Equity Manager and Personal Commenter
- Stephen S. Roach, Yale University Professor
- Benjamin M. Rosen, Technology Investor; Founder, Compaq
- David E. Shaw, Hedge Fund Manager
- John J. Studzinski, CBE, investment banker and philanthropist American-English
- Andrew Toy, CEO and Co-founder of Divide
- Alexander Trewby, COO and Co-founder Divide
- Sir David Walker, Chairman, Barclays PLC
- Kevin Warsh, G.W. Bush's economic adviser; Member, Board of Governors of the Federal Reserve
See also
- Dean Witter Reynolds
- Find the Card
- MSCI
- Van Kampen Fund
- Metalmark Capital, formerly Morgan Stanley Capital Partners
- Morgan Stanley Smith Barney, a joint venture with Citigroup
Note
References
Further reading
- Patricia Beard (2008). Blue Blood and Rebellion: The Battle for the Morgan Stanley Soul .
External links
- Official website
Source of the article : Wikipedia
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