History of Morgan Stanley in Timeline

Morgan Stanley is a global investment bank and financial services firm headquartered in New York City. It operates in 42 countries with over 80,000 employees, serving corporations, governments, institutions, and individuals. Morgan Stanley's strong financial performance is reflected in its ranking on the Fortune 500 and Forbes Global 2000 lists.

1933: Glass-Steagall Act

In 1933, the passage of the Glass-Steagall Act led J.P. Morgan & Co. to choose commercial banking, resulting in some employees leaving to form 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 in response to the Glass-Steagall Act, achieving a 24% market share in public offerings and private placements during its first year.

1938: Lead Underwriter for US Steel Debentures

In 1938, Morgan Stanley acted as the lead underwriter for 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 to Allow More Activity in Securities Business

In 1941, Morgan Stanley went through a reorganization 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: Perry Hall Ends Leadership

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

1962: Creation of first computer model for financial analysis

In 1962, Morgan Stanley created the first viable computer model for financial analysis.

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

In 1967, Morgan Stanley established Morgan & Cie, International in Paris and acquired Brooks, Harvey & Co., Inc.

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 entity.

1997: Merger with Dean Witter Discover & Co.

In 1997, the original Morgan Stanley merged with Dean Witter Discover & Co., with Philip J. Purcell becoming 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 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, while 2,687 were successfully evacuated.

2001: Reference to September 11 attacks

In 2001, the September 11 attacks are referenced as a reason provided for the loss of emails, which was later found to be false.

2001: Name Change to Morgan Stanley

In 2001, the company's name was changed to Morgan Stanley.

November 2003: Morgan Stanley Children's Hospital Opened

In November 2003, the Morgan Stanley Children's Hospital was opened, named in recognition of the firm's sponsorship.

2003: Morgan Stanley Settles Misleading Research Suit

In 2003, Morgan Stanley agreed to pay $125 million as part of a $1.4 billion settlement regarding intentionally misleading research motivated by winning investment banking business. The settlement involved Eliot Spitzer, the Attorney General of New York, NASD, the SEC, and various state securities regulators.

July 2004: Morgan Stanley Fined for Late Broker Disclosures

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

September 2004: Morgan Stanley Fined by NYSE for Multiple Violations

In September 2004, Morgan Stanley paid a $19 million fine imposed by the NYSE for various violations, including failure to deliver prospectuses, inaccurate reporting of program trading information, short sale violations, and failures in employee fingerprinting and form filings.

2004: Morgan Stanley Settles 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 Fines Morgan Stanley 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. At the time, it was the largest fine ever imposed by the NYSE.

March 2005: Management Crisis

Starting in March 2005, Morgan Stanley faced a management crisis leading to staff loss.

May 16, 2005: Morgan Stanley Found Liable in Sunbeam Case

On May 16, 2005, a Florida jury found that Morgan Stanley failed to provide adequate information to Ronald Perelman regarding Sunbeam, leading to a fraud verdict of $604 million. Punitive damages increased the total damages to $1.450 billion.

June 2005: Purcell Resigns as CEO

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

2005: Relocation to Lower Manhattan

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

March 2, 2006: Morgan Stanley Settles Unfair Labor Practices Lawsuit

On March 2, 2006, Morgan Stanley settled a class-action lawsuit filed in California by current and former employees for unfair labor practices related to the financial advisor training program. The $42.5 million settlement was reached without Morgan Stanley admitting any fault.

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

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.

March 21, 2007: Verdict Against Morgan Stanley Overturned

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

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

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

July 2007: Morgan Stanley Settles Precious Metals Storage Overcharge Lawsuit

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 Announces Settlement with Morgan Stanley over Email Disclosure Failures

On September 27, 2007, FINRA announced a $12.5 million settlement with Morgan Stanley over its former affiliate, Morgan Stanley DW, Inc., failing to provide emails to claimants in arbitration proceedings and to regulators. The company falsely claimed that emails were lost in the September 11 attacks.

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: Subprime Mortgage Crisis Write-downs

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

2007: Morgan Stanley Settles Broker Lawsuit

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

June 18, 2008: Morgan Stanley Admits $120 Million Loss from 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 on Fannie Mae and Freddie Mac Rescue Strategies

In August 2008, Morgan Stanley was contracted by the United States Treasury to advise 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.

September 19, 2008: Share Price Plummets

By September 19, 2008, Morgan Stanley's share price had slid 57% in four days, and the company explored merger possibilities.

September 22, 2008: Became a 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.

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, delivered via a physical check.

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

On October 14, 2008, 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

During a four week period from mid-September to mid-October 2008, Morgan Stanley itself was at risk of failure.

2008: Borrowed $107.3 Billion from the Fed

During the 2008 financial crisis, Morgan Stanley borrowed $107.3 billion from the Fed, the most of any bank.

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, contributing to the financial crisis.

2008: Context of 2008 financial crisis

The 2008 financial crisis is referenced in connection to the settlement in February 2016 because it was related to Morgan Stanley's creation of mortgage-backed bonds before the crisis.

January 13, 2009: Morgan Stanley Merges with Citi's Smith Barney

On January 13, 2009, Morgan Stanley merged its Global Wealth Management Group 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 Announces Settlement with Morgan Stanley for Misconduct with Retiree Accounts

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

October 19, 2009: Morgan Stanley to sell Van Kampen to Invesco

On October 19, 2009, Morgan Stanley announced that it would sell Van Kampen to Invesco for $1.5 billion, retaining the Morgan Stanley brand.

2009: Purchase of Smith Barney

In 2009, Morgan Stanley purchased Smith Barney from Citigroup, creating Morgan Stanley Smith Barney.

2009: Morgan Stanley Asset Management Rebranding

Until 2009, Morgan Stanley's asset management activities were principally conducted under the Morgan Stanley and Van Kampen brands.

April 2010: Morgan Stanley to pay $14M for hiding trading activity

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

2010: Conversion of Securities to Shares

In 2010, the securities from the China Investment Corporation were convertible to 9.9% of Morgan Stanley's shares.

August 22, 2011: Details of borrowing Published

On August 22, 2011, data compiled by Bloomberg News Service was published showing that Morgan Stanley borrowed the most ($107.3 billion) from the Fed during the 2008 crisis.

April 25, 2012: Morgan Stanley Executive Pleads Guilty to Corruption Charges

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 in property investments for himself and a Chinese government official who steered business to Morgan Stanley.

May 31, 2012: Morgan Stanley Buys Additional Stake in Smith Barney

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

August 7, 2012: Morgan Stanley to Pay $4.8 Million 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 estimated to have cost New Yorkers $300 million. Morgan Stanley made no admission of wrongdoing.

June 2013: Morgan Stanley Secures Approval to Acquire 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, finalizing the deal.

September 29, 2013: Morgan Stanley partnership with Longchamp Asset Management and La Française AM

On September 29, 2013, Morgan Stanley announced a partnership with Longchamp Asset Management and La Française AM.

November 2013: Investment in Affordable Housing

In November 2013, Morgan Stanley announced 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 U.S. District Judge ruled that a hedge fund employee who engaged in insider trading must repay his employer, Morgan Stanley, the full $31 million in compensation he received during his period of disloyalty.

February 2014: Morgan Stanley to pay $1.25 Billion for concealing mortgage risk

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

July 2014: Raised Fund 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: Morgan Stanley to pay $95 Million in Mortgage-Backed Securities Lawsuit

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

May 2015: Morgan Stanley Fined for Short Interest Reporting and 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 before month end.

January 2016: Offices in More Than 43 Countries

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

February 2016: Morgan Stanley to Pay $3.2 Billion for Mortgage-Backed Bonds Settlement

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

August 2016: Morgan Stanley Hong Kong Securities Fined by 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, including failure to avoid a conflict of interest between principal and agency trading.

December 2016: Morgan Stanley Unit Pays Settlement for Customer Protection Rule Violations

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

January 2017: Morgan Stanley Fined for Overbilling and Custody Rule Violations

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

March 2018: Morgan Stanley acquires 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, was fired from Morgan Stanley after allegations of harassment, threats, and assault surfaced from four women in Lake Oswego, Oregon. It was 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: Morgan Stanley to acquire Solium Capital

In February 2019, Morgan Stanley announced its 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 misled two large California public pension funds about the risks of mortgage-backed securities.

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

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

February 2020: Morgan Stanley Announces Acquisition of E-Trade

In February 2020, Morgan Stanley announced its plans to acquire E-Trade for $13 billion, a deal that was completed in October 2020.

February 2020: Acquisition of E*Trade Announced

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

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: Eaton Vance Acquisition Announced

In October 2020, Morgan Stanley announced its plans to acquire Eaton Vance, a deal that was completed in March 2021.

October 2020: Completed Acquisition of E*Trade

In October 2020, Morgan Stanley completed its acquisition of E*Trade.

October 2020: Morgan Stanley Completes Acquisition of E-Trade

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

March 2021: Morgan Stanley Completes Acquisition of Eaton Vance

In March 2021, Morgan Stanley completed its acquisition of Eaton Vance, a deal that was announced in October 2020. The acquisition increased Morgan Stanley's client assets to $5.4 trillion across its Wealth Management and Investment Management segments.

March 2021: Completed Acquisition of Eaton Vance

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

September 2022: SEC Charges for Failure to Protect Customer Data

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

December 2022: Conducted Layoffs

In December 2022, Morgan Stanley conducted layoffs.

May 2, 2023: Morgan Stanley to cut 3,000 jobs

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

November 2023: $6.5 Million Settlement for Customer Data Compromise

In November 2023, the Attorney General of Connecticut 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: Ranked in Fortune 500 and Forbes Global 2000

In 2023, Morgan Stanley ranked No. 61 in the Fortune 500 list of largest U.S. corporations by total revenue and No. 30 in the 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 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: Morgan Stanley partners with Climeworks

In October 2024, Morgan Stanley entered into a carbon dioxide removal purchase agreement with Climeworks for 40,000 tonnes, price not disclosed.

December 2024: Morgan Stanley ownership structure

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

2024: Value of managed funds by fired broker

In 2024, the $ amount managed by Douglas E. Greenberg, who was fired in 2018, was valued at approximately $12.3 million.

2024: Value of 2018 fine in 2024 dollars

In 2024, the $10 million fine levied in December 2018 against Morgan Stanley for anti-money laundering failures was worth approximately $12.3 million.

2024: Adjusted value of settlement

In 2024, the adjusted value of the $12.5 million settlement was $18.2 million.

2024: Adjusted value of compensation repaid in Skowron case

In 2024, the adjusted value of the $31 million in compensation repaid by Skowron was $41 million.

2024: Adjusted value of 2004 sex discrimination suit settlement

In 2024, the adjusted value of the $54 million sex discrimination settlement in 2004 was $85.7 million.

2024: Adjusted value of Van Kampen sale in 2024

In 2024, the adjusted value of the 2009 Van Kampen sale was $2.13 billion.

2024: Adjusted value of original damages in 2024

In 2024, the adjusted value of the original damages awarded on May 16, 2005, to Perelman was $929 million, and the $1.57B settlement that was overturned was $2.28 billion.

2024: Value of Solium Capital acquisition adjusted for 2024

In 2024, the value of the Solium Capital acquisition in February 2019 was adjusted to $1.09 billion.

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 remaining committed to facilitating the global transition to net-zero carbon emissions.

February 2025: State Attorneys General Criticize Disclosures About Investments in China

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 trading platform for buying and selling stakes in private companies.

2025: Fines for Dividend Tax Evasion

In 2025, The Dutch Public Prosecutor's Office announced it was "imposing fines totalling 101 million euros on two Morgan Stanley (MS) companies in London and Amsterdam for dividend withholding tax (dividend tax) evasion."