History of Morgan Stanley in Timeline

Morgan Stanley is a multinational investment bank and financial services company headquartered in New York City. It operates globally with a significant presence in 42 countries and employs over 80,000 people. The firm serves a diverse clientele, including corporations, governments, institutions, and individuals, offering a wide array of financial products and services. Morgan Stanley is recognized as one of the largest corporations in the United States, securing a high ranking on both the Fortune 500 and Forbes Global 2000 lists based on revenue and overall performance.

1933: Passage of the Glass–Steagall Act

In 1933, the U.S. Congress passed the Glass–Steagall Act, leading to the separation of investment and commercial banking businesses and the subsequent formation of Morgan Stanley.

September 16, 1935: Formation of the original Morgan Stanley

On September 16, 1935, the original Morgan Stanley was formed by J.P. Morgan & Co. partners Henry Sturgis Morgan, Harold Stanley, and others in response to the Glass–Steagall Act.

1938: Underwriting debentures for United States Steel Corporation

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 U.S. rail financing

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

1941: Reorganization for securities business

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

1951: Perry Hall leadership begins

In 1951, Perry Hall began leading Morgan Stanley. Hall was the last founder to lead the company.

1952: Co-management of World Bank's bonds offering

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

1961: End of Perry Hall leadership

In 1961, Perry Hall's leadership of Morgan Stanley came to an end.

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

In 1962, Morgan Stanley created the first viable computer model for financial analysis, marking a new trend in the 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. to establish 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 newly merged entity.

1997: Merger with Dean Witter Discover & Co.

In 1997, the original Morgan Stanley merged with Dean Witter Discover & Co. Philip J. Purcell, Dean Witter's chairman and CEO, became the chairman and CEO of the newly merged "Morgan Stanley Dean Witter Discover & Co."

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

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

1999: Joint venture setup in India

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

2001: September 11 attacks

In 2001, Morgan Stanley lost 13 employees during the September 11 attacks in the World Trade Center towers. 2,687 employees were successfully evacuated. The firm's offices were located on 35 floors across buildings 1, 2, and 5.

2001: Name change back to Morgan Stanley

In 2001, the company's name was changed back to Morgan Stanley, dropping Dean Witter.

November 2003: Opening of the Morgan Stanley Children's Hospital

In November 2003, New York–Presbyterian Hospital named the Morgan Stanley Children's Hospital in recognition of the firm's sponsorship. The building opened in November 2003.

2003: Settlement for Misleading Research

In 2003, Morgan Stanley agreed to pay $125 million as part of a $1.4 billion settlement involving claims of intentionally misleading research to secure investment banking business. The settlement included the Attorney General of New York, NASD, SEC, and various state securities regulators.

July 2004: NASD Fine for Late Disclosures

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

September 2004: NYSE Fine for Regulatory Failures

In September 2004, Morgan Stanley paid a $19 million fine imposed by the NYSE for failures in delivering prospectuses, inaccurate reporting, short sale violations, fingerprinting lapses, and untimely filing of exchange forms.

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 Fine for Regulatory Lapses

On January 12, 2005, the New York Stock Exchange imposed a $19 million fine on Morgan Stanley for alleged 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 entered a management crisis, resulting in staff losses.

May 16, 2005: Initial Verdict in Perelman Lawsuit

On May 16, 2005, a Florida jury found Morgan Stanley liable for failing to provide adequate information to Ronald Perelman about Sunbeam, awarding him $604 million in damages and an additional amount in punitive damages, totaling $1.450 billion. The verdict was a sanction for the firm's failure to produce documents.

June 2005: Resignation of CEO Philip J. Purcell

In June 2005, Philip J. Purcell resigned as CEO of Morgan Stanley.

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

On March 2, 2006, Morgan Stanley settled a class-action lawsuit filed in California by current and former employees in the financial advisor training program. The lawsuit alleged unfair labor practices related to overtime pay and administrative expenses, with a $42.5 million settlement reached. Morgan Stanley admitted no fault.

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 ended 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 Verdict in Perelman Lawsuit

On March 21, 2007, the ruling against Morgan Stanley in the Ronald Perelman lawsuit 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 of Precious Metals Lawsuit

In July 2007, Morgan Stanley agreed to pay $4.4 million to settle a class-action lawsuit alleging incorrect charges to 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 regarding failures by its former affiliate, Morgan Stanley DW, Inc. (MSDW), to provide emails in arbitration proceedings and to regulators. The firm initially claimed the loss of emails was due to the September 11 attacks in 2001, but millions of earlier emails were later found.

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.

2007: Massive write-downs related to the subprime mortgage crisis

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

2007: Settlement of Class Action Lawsuit

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. The Financial Services Authority fined the firm £1.4m for failing to properly control these actions.

August 2008: Contract with United States Treasury

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's share price slid 42% in two days, causing CEO John J. Mack to address staff concerns.

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 explored merger possibilities with various financial institutions.

September 22, 2008: Announcement of becoming a bank holding company

On September 22, 2008, Morgan Stanley announced that it would become a traditional bank holding company regulated by the Federal Reserve.

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. A physical check had to be used.

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

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

October 2008: Concerns over Mitsubishi deal cause stock fall

During the October 2008 stock market volatility, 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, with 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 collapse was a central component of the 2008 financial crisis.

2008: Financial Crisis

In 2008, the financial crisis occurred.

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. Morgan Stanley held 51% ownership, while Citi had 49%.

March 2009: FINRA Settlement for Misconduct

In March 2009, FINRA announced that Morgan Stanley would pay over $7 million for misconduct in handling 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.

2009: Purchase of Smith Barney

In 2009, Morgan Stanley purchased Smith Barney from Citigroup, creating 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 principally conducted under the Morgan Stanley and Van Kampen brands.

April 2010: CFTC Settlement for Oil Futures Trading

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 reports on Fed loans

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

April 25, 2012: Guilty Plea in Anti-Corruption Case

On April 25, 2012, Garth R. Peterson, a high-ranking real estate executive at Morgan Stanley 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: Purchase of Additional Stake in Joint Venture

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

August 7, 2012: Settlement in Price-Fixing Scandal

On August 7, 2012, Morgan Stanley agreed to pay $4.8 million in fines to settle a price-fixing scandal that allegedly cost New Yorkers $300 million. Morgan Stanley did not admit any wrongdoing.

June 2013: Acquisition of Remaining Stake in Smith Barney

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

September 29, 2013: Partnership Announcement

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

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

In 2013, in the case of Morgan Stanley v. Skowron, a United States District Judge held that an employee engaging in insider trading must repay his employer the full $31 million in compensation he was paid during his period of faithlessness because he violated the company's code of conduct.

February 2014: Settlement with US Government

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

July 2014: Fundraising 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 in 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. The lawsuit 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: Reported job cuts

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

January 2016: Company reports offices in more than 43 countries.

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

February 2016: Settlement over Mortgage-Backed Bonds

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 violating Hong Kong's Code of Conduct, including failing to avoid a conflict of interest between principal and agency trading.

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 Violations

In January 2017, Morgan Stanley was fined $13 million for overbilling and violating investor asset safeguarding custody rules, agreeing 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.

December 2018: $10 Million Fine 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, citing violations of the Bank Secrecy Act over a five-year period.

2018: Broker Fired After Harassment Allegations

In 2018, Douglas E. Greenberg, a broker at Morgan Stanley, was fired following reports that four women from Lake Oswego, Oregon, sought police protection against him over 15 years due to allegations of 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. The story was dubbed a #MeToo moment for Portland's financial service industry.

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: $150 Million Settlement for Misleading Pension Funds

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. California's Attorney General stated that Morgan Stanley prioritized profits over teachers and public employees by misrepresenting the risk of their products, though Morgan Stanley denied wrongdoing.

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

In November 2019, Morgan Stanley fired or placed on leave four traders suspected of securities mismarking. The firm believed that $100–140 million in losses were concealed by the mismarking of the securities' value.

February 2020: Deal Announced for the Acquisition of E*Trade

In February 2020, Morgan Stanley announced a deal to acquire E*Trade for $13 Billion.

February 2020: Announcement of E-Trade Acquisition

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

May 2020: $5 Million Penalty for Misleading Clients

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: Deal Announced for the Acquisition of Eaton Vance

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

October 2020: Announcement of Eaton Vance Acquisition

In October 2020, Morgan Stanley announced the acquisition of 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, a deal initially announced in February 2020, for $13 billion. This was 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, increasing its client assets.

March 2021: Completion of Eaton Vance Acquisition

In March 2021, Morgan Stanley completed its acquisition of Eaton Vance, which was announced in October 2020. Following the acquisition, Morgan Stanley had $5.4 trillion in client assets across its Wealth Management and Investment Management segments.

September 2022: SEC Charges for Failing to Protect Customer Data

In September 2022, the SEC announced charges against Morgan Stanley due to 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

In December 2022, Morgan Stanley conducted layoffs.

May 2, 2023: Morgan Stanley to Reduce Positions

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

November 2023: $6.5 Million Settlement for Data Security Negligence

In November 2023, the 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: Expected layoffs

In 2023, Bloomberg announced that Morgan Stanley expected more layoffs.

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 Forbes Global 2000.

January 2024: $249 Million Settlement for Unauthorized Disclosure of Block Trades

In January 2024, Morgan Stanley agreed to pay $249 million to settle a criminal investigation and a related Security 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 Agreement

In October 2024, Morgan Stanley signed an agreement with Climeworks, a direct air capture startup, to purchase 40,000 tonnes of carbon dioxide removal for an undisclosed amount.

December 2024: Institutional Ownership

As of December 2024, Morgan Stanley is mainly owned by institutional investors, holding 62.00% of the shares.

January 2025: Morgan Stanley Leaves Net-Zero Banking Alliance

In January 2025, Morgan Stanley announced its decision to withdraw from the Net-Zero Banking Alliance, while affirming its dedication to facilitating the global transition to net-zero carbon emissions.

February 2025: State Attorneys General Criticize China Investments Disclosures

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.