History of Morgan Stanley in Timeline

Morgan Stanley is a prominent American multinational investment bank and financial services firm headquartered in New York City. Operating in 42 countries with over 80,000 employees, it serves a diverse clientele including corporations, governments, institutions, and individuals. Recognized as a major player in the financial sector, Morgan Stanley was ranked 61st on the 2023 Fortune 500 list and 30th on the Forbes Global 2000, solidifying its position as one of the largest and most influential companies in the United States and worldwide.

1933: Glass-Steagall Act

In 1933, the U.S. Congress passed the Glass-Steagall Act, leading to the separation of investment banking and commercial banking businesses, which in turn led to the formation of Morgan Stanley.

September 16, 1935: Formation of Morgan Stanley

On September 16, 1935, the original Morgan Stanley was formed by J.P. Morgan & Co. partners in response to the Glass–Steagall Act, which required the separation of American commercial and investment banking businesses.

1938: Lead Underwriter for US Steel Debentures

In 1938, Morgan Stanley was the lead underwriter in the distribution of US$100 million of debentures for the United States Steel Corporation.

1939: Lead Syndicate in US Rail Financing

In 1939, Morgan Stanley obtained the distinction of being the lead syndicate in the U.S. rail financing.

1941: Reorganization to increase securities business activity

Morgan Stanley went through a reorganization in 1941 to allow for more activity in its securities business.

1952: Co-managed World Bank bonds offering

In 1952, Morgan Stanley co-managed the World Bank's triple-A-rated bonds offering.

1961: End of Perry Hall's Leadership

In 1961, Perry Hall, the last founder to lead Morgan Stanley, concluded his leadership of the firm.

1962: Creation of the first viable computer model for financial analysis

In 1962, Morgan Stanley created what it credits as the first viable computer model for financial analysis, initiating a new trend in the financial analysis field.

1967: Establishment of Morgan & Cie, International and Acquisition of Brooks, Harvey & Co., Inc.

In 1967, Morgan Stanley established Morgan & Cie, International in Paris to enter the European securities market and acquired Brooks, Harvey & Co., Inc., establishing a presence in the real estate business.

1996: Acquisition of Van Kampen American Capital

In 1996, Morgan Stanley acquired Van Kampen American Capital.

February 5, 1997: Merger with Dean Witter Discover & Co.

On February 5, 1997, Morgan Stanley merged with Dean Witter Discover & Co., with Philip J. Purcell continuing as chairman and CEO of the merged company.

1997: Merger with Dean Witter Discover & Co.

In 1997, the original Morgan Stanley merged with Dean Witter Discover & Co., leading to Philip J. Purcell becoming the chairman and CEO of the newly merged entity.

1998: Name Changed to Morgan Stanley Dean Witter & Co.

In 1998, the name of the firm was changed to "Morgan Stanley Dean Witter & Co."

1999: Joint Venture in India

In 1999, John Mack set up a joint venture in India with local partner JM Financial.

2001: September 11 attacks

During the September 11 attacks in 2001, Morgan Stanley lost 13 employees in the World Trade Center towers, while 2,687 were successfully evacuated.

2001: Name Change Back to Morgan Stanley

In 2001, the firm changed its name back to "Morgan Stanley" after having been named "Morgan Stanley Dean Witter Discover & Co."

November 2003: Opening of Morgan Stanley Children's Hospital

In November 2003, New York–Presbyterian Hospital named the Morgan Stanley Children's Hospital in recognition of Morgan Stanley's sponsorship, with the child-friendly building opening.

2003: Settlement for Misleading Research

In 2003, Morgan Stanley agreed to pay $125 million as part of a $1.4 billion settlement related to intentionally misleading research motivated by a desire to win investment banking business. This settlement was brought by various regulatory bodies.

July 2004: Fine for Late Disclosures

In July 2004, Morgan Stanley paid NASD a $2.2 million fine for over 1,800 late disclosures of reportable information concerning its brokers.

September 2004: Fine for Regulatory Failures

In September 2004, Morgan Stanley paid a $19 million fine imposed by the NYSE for several failures including not delivering prospectuses to customers, inaccurate reporting, short sale violations, and failure to fingerprint new employees.

2004: Settlement of Sex Discrimination Suit

In 2004, Morgan Stanley settled a sex discrimination suit brought by the Equal Employment Opportunity Commission for $54 million.

January 12, 2005: NYSE Imposes Record Fine

On January 12, 2005, the New York Stock Exchange fined Morgan Stanley $19 million for regulatory and supervisory lapses, which was the largest fine ever imposed by the NYSE at the time.

March 2005: Management Crisis Begins

In March 2005, Morgan Stanley experienced a management crisis which resulted in a loss of the firm's staff.

May 16, 2005: Jury Finds Morgan Stanley Liable for Fraud

On May 16, 2005, a Florida jury found Morgan Stanley liable for defrauding Ronald Perelman regarding Sunbeam, awarding him $604 million in damages. Punitive damages increased the total award to $1.450 billion.

June 2005: Purcell Resigns as CEO

In June 2005, Purcell resigned as CEO of Morgan Stanley amid a public campaign challenging his strategies.

2005: Move back to Lower Manhattan

In 2005, Morgan Stanley moved 2,300 of its employees back to lower Manhattan.

March 2, 2006: Settlement of Class-Action Lawsuit for Unfair Labor Practices

On March 2, 2006, Morgan Stanley settled a class-action lawsuit in California for $42.5 million, filed by current and former employees alleging unfair labor practices in the financial advisor training program. Morgan Stanley admitted no fault in the settlement.

December 19, 2006: Announcement of Discover Card Unit Spin-off

On December 19, 2006, Morgan Stanley announced the spin-off of its Discover Card unit.

February 2007: End of Indian Joint Venture

In February 2007, Morgan Stanley announced the end of its Indian joint venture, acquiring its local partner's stake in the institutional brokerage business and selling its own stake in other businesses.

March 21, 2007: Overturning of Fraud Verdict

On March 21, 2007, the ruling against Morgan Stanley in the Sunbeam case was overturned, and the firm was no longer required to pay the $1.57 billion verdict.

June 30, 2007: Completion of Discover Financial Spin-off

On June 30, 2007, Morgan Stanley completed the spin-off of Discover Financial.

July 2007: Settlement for Incorrect Precious Metals Storage Charges

In July 2007, Morgan Stanley agreed to pay $4.4 million to settle a class-action lawsuit accusing the firm of incorrectly charging clients for the storage of precious metals.

September 27, 2007: FINRA Settlement for Email Disclosure Failures

On September 27, 2007, FINRA announced a $12.5 million settlement with Morgan Stanley related to its former affiliate, Morgan Stanley DW, Inc.'s (MSDW), failure to provide emails in arbitration proceedings and to regulators.

December 19, 2007: Capital Infusion from China Investment Corporation

On December 19, 2007, Morgan Stanley announced it would receive a US$5 billion capital infusion from the China Investment Corporation in exchange for securities convertible to 9.9% of its shares in 2010.

2007: Massive Write-Downs related to the subprime mortgage crisis

By 2007, Morgan Stanley experienced massive write-downs related to the subprime mortgage crisis.

2007: Settlement of Class Action Lawsuit by Female Brokers

In 2007, Morgan Stanley agreed to pay $46 million to settle a class action lawsuit brought by eight female brokers.

June 18, 2008: Loss Due to Rogue Trader

On June 18, 2008, Morgan Stanley admitted that a rogue trader's actions resulted in a $120 million loss for the firm.

August 2008: Advising the Treasury on Fannie Mae and Freddie Mac

In August 2008, Morgan Stanley was contracted by the United States Treasury to advise the government on potential rescue strategies for Fannie Mae and Freddie Mac.

September 17, 2008: Share Price Slide

On September 17, 2008, Morgan Stanley faced difficulties after a 42% slide in its share price in two days, prompting a memo from CEO John J. Mack.

September 19, 2008: Exploration of Merger Possibilities

By September 19, 2008, Morgan Stanley's share price had slid 57% in four days, and the company was said to have explored merger possibilities with several entities.

September 22, 2008: Becoming a Traditional Bank Holding Company

On September 22, 2008, Morgan Stanley and Goldman Sachs announced they would become traditional bank holding companies regulated by the Federal Reserve, ending the era of securities firms.

September 29, 2008: Investment from MUFG Bank

On September 29, 2008, MUFG Bank invested $9 billion in a direct purchase of a 21% ownership stake in Morgan Stanley, delivering the payment via a physical check due to emergency circumstances.

October 14, 2008: Completion of Mitsubishi UFJ's stake

On October 14, 2008, Morgan Stanley's stock price recovered once Mitsubishi UFJ's 21% stake in Morgan Stanley was completed.

October 2008: Stock Market Volatility

During October 2008, concerns over the completion of the Mitsubishi deal caused a dramatic fall in Morgan Stanley's stock price.

October 2008: Risk of Failure

In October 2008, Morgan Stanley itself was at risk of failure, experiencing rapidly changing prospects, regulatory model and ownership stakes.

2008: Losses in Process Driven Trading Unit

In 2008, Morgan Stanley's Process Driven Trading unit reportedly lost nearly $300 million in one day due to a short squeeze. The bubble's subsequent collapse was considered a central component of the 2008 financial crisis.

2008: Financial Crisis

In 2008, the world experienced a large financial crisis.

January 13, 2009: Merger with Citi's Smith Barney

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

March 2009: FINRA Settlement for Misconduct in Retiree Accounts

In March 2009, FINRA announced that Morgan Stanley was to pay more than $7 million for misconduct in the handling of the accounts of 90 retirees in the Rochester, New York area.

October 19, 2009: Sale of Van Kampen to Invesco

On October 19, 2009, Morgan Stanley announced the sale of Van Kampen to Invesco for $1.5 billion, while retaining the Morgan Stanley brand for asset management services.

2009: Purchase of Smith Barney

In 2009, Morgan Stanley purchased Smith Barney from Citigroup, leading to the formation of Morgan Stanley Smith Barney, the largest wealth management business in the world.

2009: Asset Management Under Morgan Stanley and Van Kampen Brands

Until 2009, Morgan Stanley's asset management activities were mainly conducted under the Morgan Stanley and Van Kampen brands, providing investment products and services across various asset classes.

April 2010: CFTC Settlement for Oil Futures Trading Activity

In April 2010, the Commodity Futures Trading Commission (CFTC) announced that Morgan Stanley agreed to pay $14 million related to an attempt to conceal prohibited trading activity in oil futures.

August 22, 2011: Bloomberg News Service published data about Morgan Stanley borrowing from the Fed during the 2008 crisis

According to data compiled by Bloomberg News Service and published August 22, 2011, Morgan Stanley borrowed $107.3 billion from the Fed during the 2008 crisis, the most of any bank.

April 25, 2012: Garth Peterson Pleads Guilty to Corruption Charges

On April 25, 2012, Garth R. Peterson, a high-ranking Morgan Stanley real estate executive in China, pleaded guilty to violating U.S. federal anti-corruption laws for secretly acquiring millions of dollars' worth of property investments for himself and a Chinese government official who steered business to Morgan Stanley.

May 31, 2012: Morgan Stanley Purchases Additional Stake in Joint Venture

On May 31, 2012, Morgan Stanley exercised its option to buy an additional 14% of the Morgan Stanley Smith Barney joint venture from Citi.

August 7, 2012: Settlement in Price-Fixing Scandal

On August 7, 2012, it was announced that Morgan Stanley would pay $4.8 million in fines to settle a price-fixing scandal, which had reportedly cost New Yorkers $300 million.

June 2013: Morgan Stanley to Finalize Acquisition of Remaining Stake in Smith Barney

In June 2013, Morgan Stanley announced that it had received all regulatory approvals to purchase Citigroup's remaining 35% stake in Smith Barney and would finalize the deal.

September 29, 2013: Partnership with Longchamp and La Française AM

On September 29, 2013, Morgan Stanley announced a partnership with Longchamp Asset Management and La Française AM, to work with UCITS hedge funds and alternative investments.

November 2013: Investment in Affordable Housing

In November 2013, Morgan Stanley announced that it would invest $1 billion to help improve affordable housing.

2013: Morgan Stanley v. Skowron Case

In 2013, in the case of Morgan Stanley v. Skowron, a U.S. District Judge ruled that a hedge fund employee engaging in insider trading must repay his employer, Morgan Stanley, the full $31 million he was paid as compensation during his period of disloyalty.

February 2014: Settlement with US Government

In February 2014, Morgan Stanley agreed to pay $1.25 billion to the US government for concealing the full risk associated with mortgage securities with the Federal Housing Finance Agency.

July 2014: Raising Funds for Asian Private Equity

In July 2014, Morgan Stanley's Asian private equity arm announced it had raised around $1.7 billion for its fourth fund in the area.

September 2014: Settlement of Mortgage-Backed Securities Lawsuit

In September 2014, Morgan Stanley agreed to pay $95 million to resolve a lawsuit by the Public Employees' Retirement System of Mississippi (MissPERS) and the West Virginia Investment Management Board, which accused Morgan Stanley of misleading investors in mortgage-backed securities.

May 2015: FINRA Fine for Rule Violations

In May 2015, Morgan Stanley was fined $2 million by FINRA for short interest reporting and rule violations that occurred for more than six years.

December 2015: Cutting Fixed Income Jobs

In December 2015, it was reported that Morgan Stanley would be cutting around 25 percent of its fixed income jobs.

January 2016: Presence in More Than 43 Countries

In January 2016, the company reported that it had offices in "more than" 43 countries.

February 2016: Mortgage-Backed Bonds Settlement

In February 2016, Morgan Stanley agreed to pay $3.2 billion to settle with state and federal authorities over the creation of mortgage-backed bonds before the 2008 financial crisis.

August 2016: Fine by Hong Kong Securities Regulator

In August 2016, Morgan Stanley Hong Kong Securities Ltd. was fined HK$18.5 million ($2.4 million) by Hong Kong's Securities and Futures Commission for violations of Hong Kong's Code of Conduct.

December 2016: Settlement for Customer Protection Rule Violations

In December 2016, a unit of Morgan Stanley paid $7.5 million to settle customer protection rule violations.

January 2017: Fine for Overbilling and Custody Rule Violations

In January 2017, Morgan Stanley was fined $13 million for overbilling and violating investor asset safeguarding custody rules. Morgan Stanley agreed to pay the fine without commenting on the charges.

March 2018: Acquisition of Mesa West

In March 2018, Morgan Stanley acquired Mesa West, a U.S. commercial real estate credit platform, enhancing its real assets and private credit offerings.

December 2018: FINRA Fines Morgan Stanley $10 Million for Anti-Money Laundering Failures

In December 2018, FINRA announced a $10 million fine against Morgan Stanley for failures in its anti-money laundering compliance. Morgan Stanley violated the Bank Secrecy Act over a period of five years.

2018: Broker Fired After Harassment Allegations

In 2018, Douglas E. Greenberg, a broker, was fired after allegations surfaced that four women from Lake Oswego, Oregon, had sought police protection against him over a 15-year period due to harassment, threats, and assault. It was also reported that Morgan Stanley executives were aware of these allegations, including arrests and a federal subpoena, but did not take action. He had also made the 2018 Forbes list for top wealth advisors in Oregon.

February 2019: Acquisition of Solium Capital

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

April 2019: Morgan Stanley to Pay $150 Million in Settlement

In April 2019, Morgan Stanley agreed to pay $150 million to settle charges that it had misled two large California public pension funds about the risks of mortgage-backed securities.

November 2019: Traders Fired or Placed on Leave for Suspected Securities Mismarking

In November 2019, Morgan Stanley fired or placed on leave four traders for suspected securities mismarking, where the firm suspected that $100–140 million in losses were concealed.

February 2020: Announcement of E-Trade Acquisition

In February 2020, Morgan Stanley announced its plan to acquire E-Trade for $13 billion.

February 2020: Deal Announced for Acquisition of E*Trade

In February 2020, the deal was announced for Morgan Stanley to acquire E*Trade for $13 billion.

May 2020: Morgan Stanley to Pay $5 Million Penalty

In May 2020, Morgan Stanley agreed to pay a $5 million penalty to settle allegations made by the SEC that the corporation provided misleading information to some clients in the retail wrap fee programs regarding trade-execution services and transaction costs.

October 2020: Eaton Vance Acquisition Announcement

In October 2020, Morgan Stanley announced a deal to acquire Eaton Vance.

October 2020: Acquisition of E*Trade Completed

In October 2020, Morgan Stanley completed its acquisition of E*Trade for $13 billion.

October 2020: Completion of E-Trade Acquisition

In October 2020, Morgan Stanley finalized its acquisition of E-Trade for $13 billion, marking the largest acquisition by a U.S. bank since the 2008 financial crisis.

March 2021: Acquisition of Eaton Vance Completed

In March 2021, Morgan Stanley completed its acquisition of Eaton Vance, adding $5.4 trillion of client assets.

March 2021: Completion of Eaton Vance Acquisition

In March 2021, Morgan Stanley finalized its acquisition of Eaton Vance, announced in October 2020, increasing its client assets to $5.4 trillion across its Wealth Management and Investment Management divisions.

September 2022: SEC Announces Charges Against Morgan Stanley for Data Protection Failures

In September 2022, the SEC announced charges against Morgan Stanley stemming from the firm's extensive failures, over a five-year period, to protect the personal identifying information of approximately 15 million customers. Morgan Stanley agreed to pay a $35 million penalty to settle the SEC charges.

December 2022: Layoffs Conducted

In December 2022, Morgan Stanley conducted layoffs.

May 2, 2023: Morgan Stanley to Reduce 3,000 Positions

On May 2, 2023, it was reported that Morgan Stanley planned to cut approximately 3,000 positions by the end of June, which constituted about 5 percent of the bank's total workforce. Financial advisors and support staff were exempt from these reductions.

November 2023: Morgan Stanley Settles with Connecticut for $6.5 Million

In November 2023, Attorney General of Connecticut William Tong announced a $6.5 million settlement with Morgan Stanley for compromising the personal information of its customers due to negligent security practices.

2023: Fortune 500 and Forbes Global 2000 rankings

In 2023, Morgan Stanley ranked No. 61 in the Fortune 500 list of the largest United States corporations by total revenue and No. 30 in the Forbes Global 2000.

2023: Expected additional Layoffs

In 2023, it was announced that more layoffs were expected at Morgan Stanley.

January 2024: Morgan Stanley to Pay $249 Million to Settle Investigations

In January 2024, Morgan Stanley agreed to pay $249 million to settle a criminal investigation and a related Securities and Exchange Commission probe related to the unauthorized disclosure of block trades to investors, by the bank's supervisor for such trades and another employee.

October 2024: Carbon Dioxide Removal Purchase Agreement

In October 2024, Morgan Stanley signed a 40,000-tonne carbon dioxide removal purchase agreement with Climeworks, a direct air capture startup company, for an undisclosed price.

December 2024: Institutional Investor Ownership

As of December 2024, Morgan Stanley is primarily owned by institutional investors, who hold 62.00% of the company's shares.

2024: Value of Managed Funds in 2018

In 2024, the $12.3 million adjusted value of the funds managed by Douglas E. Greenberg in 2018 was noted, following reports that he was fired that year due to harassment allegations.

2024: Adjusted Fine Amount in 2024

In 2024, the adjusted value of the $10 million fine levied against Morgan Stanley in December 2018 for anti-money laundering failures was noted to be $12.3 million.

January 2025: Morgan Stanley Leaves Net-Zero Banking Alliance

In January 2025, Morgan Stanley announced its decision to leave the Net-Zero Banking Alliance while still committing to facilitating the world's transition to net-zero carbon emissions.

February 2025: State Attorneys General Criticize Morgan Stanley

In February 2025, a group of 17 U.S. state attorneys general criticized Morgan Stanley for making improper or inadequate disclosures about investments in China.

October 2025: Morgan Stanley to Acquire EquityZen

In October 2025, Morgan Stanley agreed to acquire EquityZen, a platform for trading stakes in private companies.

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