Morgan Stanley

Morgan Stanley is a kind of investment Services Corporation founded by J.P.Morgan & Co. in 1935 in New York, USA. It has its branches in 33 countries with 600 offices and approximately 45,000 workers.

Morgan Stanley company provides its services to the customers, corporations, governments, institutions, and individuals and deal with the three business segments namely Institutional Securities, Global Wealth Management group, and Investment management.

History of Morgan Stanley:-

Under the Glass Steagall Act it is not possible to hold both the retail banking and investment banking business under one roof. As a result of which many employees left and joined the Drexel partners to form the Morgan Stanley. Finally on 16 September, 1935 it was officially opened for business in New York in United States. After a year Morgan Stanley achieved a great success in the market share and become a large syndicate in U.S. rail financing in 1939.

From 1951 to 1961 the head of the firm was Parry Hall. In the same period this firm also deals with the IBM, AT&T’s, and General Motors. In 1962 it entered the field of the financial analysis by making a computer model for financial analysis. In 1967 Morgan Stanley established its presence in the European Securities market and also in the real estate business and in 1970 in Japanese markets.

In 1975 Morgan Stanley established another branch in London known by the name Morgan Stanley Reality Inc. in which the wealth management department was added in 1977. On December 1980 the merger between the Morgan Stanley and Shuman of Agnew were held. In 1984 this firm entered the Prime Brokerage business and listed on the New York Stock Exchange by the year 1986.

In 1997 the firm was again merged with the Dean Witter Reynolds and known by the name Morgan Stanley Dean Witter and Co. until 2001. In 1999 Morgan Stanley entered India in joint venture with JM Financials. IN 2004 it also managed the internet IPO named Google and also obtained the Canary Wharf Group. Morgan Stanley declared its withdrawal from the discover card unit on 19 December 2006. In exchange of securities Morgan Stanley also received 5 billion US dollars from the China Investment Corporation which in 2010 would be converted into 9.9% of its shares.

Morgan Stanley Organization:-

Morgan Stanley deals with the three business segments namely:

Morgan Stanley - Institutional Securities:-

This segment provides a large business to the Morgan Stanley by providing the services like capital raising, real estate finance, advice on gains and mergers, and corporate lending. Morgan Stanley also includes the equities and fixed income divisions of the firm.

Morgan Stanley - Global Wealth Management Group:-

This segment basically provides the advisory services on brokerage and investment and the financial and wealth planning services to the clients.

Morgan Stanley - Investment Management:-

This segment provides its products and services to the institutional investors which include pension plans, corporations, foundations, non profit organizations, insurance companies and banks. They also provide its services to the retail clients through Morgan Stanley’s institutional distribution channel.

Controversies for Morgan Stanley:-

Morgan Stanley was involved in many controversies. Some of these were:-

  • In order to settle the investigations regarding the blundered done by the retail investors in investing the large amount of investment in the banking securities brokerage firms, Morgan Stanley had to pay the billions of dollars.
  • To settled the sex discrimination brought by the Equal Employment Opportunity Commission this firm has to pay 54 million dollars.
  • For regulatory and supervisory lapses the company has to pay the fine of 19 million dollars to the New York Stock Exchange.
  • On May 16, 2005 when Morgan Stanley failed to give the information regarding Sun beam to Ronald Perelman then Florida jury fined Morgan Stanley an amount of 604 million dollars for telling lie and refusing to produce the documents to the court.
  • Morgan Stanley has to pay 40 million dollars in order to settle the problem of unfair labor practices given to the employees who are employed through the financial advisor training program.

Awards:-

The lists of awards won by Morgan Stanley are:-

  • Consequently won the “Financial times International Prime Brokerage House of the Year” in 2005, 2006 and 2007.
  • Business week No. 1 Prime Brokerage House Award in 2006 and 2007.
  • Euro money’s Global Investment bank of the year.
  • Won Best Investment Bank award in Spain, Luxemburg and Taiwan.
  • Won Best M&A House award in Denmark, UK, Singapore and Hong Kong.
  • Won Best Debt House award in China, Colombia and Singapore.
  • In Latin America Morgan Stanley also won the Best Project Finance House award.

Popularity in Magazines:-

  • By Working Mothers Magazine Morgan Stanley was graded as one of the 100 best companies for working mothers in 2004.
  • Stanley was named as the best company for the Americans Africans, in 2004 by the Family Digest Magazine.
  • By Essence Magazine it was regarded as the “Best 30 places to work”.
  • In February 2004 the Hispanic Magazine considered Morgan Stanley as one of the “100 Companies providing the best opportunities to Hispanics” and it was named as one of the “Top Companies for Asian Americans” by the Asian Enterprise magazine in April 2004.
  • This firm is also listed as the best corporation to work in Japan.