History of Morgan Stanley in Timeline

Morgan Stanley is a prominent American multinational investment bank and financial services company headquartered in New York City. Operating globally with a substantial workforce exceeding 80,000 employees across 42 countries, it serves a diverse clientele encompassing corporations, governments, institutions, and individuals. Recognized for its financial performance, Morgan Stanley secured the 61st position on the 2023 Fortune 500 list and ranked 30th in the Forbes Global 2000, highlighting its significance in the global financial landscape.

1933: Glass-Steagall Act forces split

In 1933, the U.S. Congress passed the Glass–Steagall Act, making it impossible for a corporation to have both investment banking and commercial banking businesses under a single holding entity, leading to the 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 in response to the Glass–Steagall Act.

1938: Lead underwriter for United States Steel Corporation

In 1938, Morgan Stanley was 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 for securities business

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

1951: Perry Hall leads Morgan Stanley

Perry Hall led Morgan Stanley from 1951 until 1961.

1952: Co-managed World Bank's bond offering

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

1961: End of Perry Hall's leadership

Perry Hall's leadership of Morgan Stanley ended 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 in Paris and acquisition of Brooks, Harvey & Co., Inc.

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

1994: Stock price level

Concerns over the completion of the Mitsubishi deal during the October 2008 stock market volatility caused a dramatic fall in Morgan Stanley's stock price to levels last seen in 1994.

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., with 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, Morgan Stanley set up a joint venture in India with local partner JM Financial.

2001: Loss of employees in September 11 attacks

During the September 11 attacks in 2001, Morgan Stanley lost 13 employees in the World Trade Center towers.

2001: Name changed to "Morgan Stanley"

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

November 2003: Morgan Stanley Children's Hospital opens

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

March 2005: Management crisis begins

In March 2005, Morgan Stanley faced a management crisis, leading to staff losses.

June 2005: Purcell resigns as CEO

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

2005: Relocation of employees to lower Manhattan

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

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 the other businesses.

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

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

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 subprime mortgage crisis

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

June 18, 2008: Loss from Rogue Trader

On June 18, 2008, Morgan Stanley admitted that the actions of a rogue trader on one of its trading desks resulted in a $120 million loss for the firm.

August 2008: Advising the government 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 and CEO memo

On September 17, 2008, Morgan Stanley's share price slid 42% in two days, prompting CEO John J. Mack to address staff about market fears and short-sellers.

September 19, 2008: Exploration of merger possibilities

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

September 22, 2008: Becoming 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: MUFG Bank invests $9 billion

On September 29, 2008, MUFG Bank invested $9 billion in 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, Mitsubishi UFJ's 21% stake in Morgan Stanley was completed, leading to stock recovery.

October 2008: Risk of failure

In October 2008, Morgan Stanley itself was at risk of failure due to the financial crisis.

October 2008: Stock market volatility causes price drop

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

2008: Borrowed from the Fed

During the 2008 crisis, Morgan Stanley borrowed $107.3 billion from the Fed.

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.

2008: Biggest acquisition since 2008 financial crisis

In October 2020, the company completed its acquisition of E*Trade, a deal announced in February 2020 for $13 billion, the biggest acquisition by a U.S. bank since the 2008 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 form Morgan Stanley Smith Barney, with Morgan Stanley owning 51% and Citi holding 49% of the entity.

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.

2009: Asset Management Brands

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

2010: Conversion of securities to shares

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

August 22, 2011: Bloomberg News Service publishes data on Morgan Stanley's borrowing from the Fed

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: Guilty Plea in Anti-Corruption Case

On April 25, 2012, Garth R. Peterson, a Morgan Stanley real estate executive in China, pleaded guilty to violating U.S. federal anti-corruption laws for secretly acquiring property investments.

May 31, 2012: Purchase of Additional Stake in Joint Venture

On May 31, 2012, Morgan Stanley exercised its option to purchase an additional 14% of the joint venture, Morgan Stanley Smith Barney, from 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, which was estimated to have cost New Yorkers $300 million.

June 2013: Acquisition of Remaining Stake in Smith Barney

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

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

On September 29, 2013, Morgan Stanley announced a partnership with Longchamp Asset Management, a French-based asset manager, and La Française AM, a multi-specialist asset manager.

November 2013: Investment in affordable housing

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

July 2014: Asian private equity arm raises $1.7 billion

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

December 2015: Fixed income 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: Offices in "more than" 43 countries

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

December 2018: FINRA Fines Morgan Stanley $10 Million for AML Failures

In December 2018, FINRA announced a $10 million fine against Morgan Stanley for failures in its anti-money laundering (AML) compliance. The company violated 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 after allegations of harassment, threats, and assault surfaced from four women in Lake Oswego, Oregon. The report indicated that Morgan Stanley executives were aware of these allegations, including two arrests and a federal subpoena, but took no action. The firing and the prior allegations were considered a #MeToo moment for Portland's financial service industry. He was also on the 2018 Forbes list for top wealth advisors in Oregon.

April 2019: Morgan Stanley to Pay $150 Million to Settle Charges

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 Attorney General Xavier Becerra stated that "Morgan Stanley lied about the risk of its products and put profits over teachers and public employees who relied on its advice." Morgan Stanley denied wrongdoing.

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. The firm suspected that $100–140 million in losses were concealed by the mismarking of the value of the securities.

February 2020: Announcement of E*Trade acquisition

In February 2020, Morgan Stanley announced the acquisition of E*Trade for $13 billion.

May 2020: Morgan Stanley to pay penalty over misleading info to 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: Acquisition of E*Trade completed

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

October 2020: Announcement of Eaton Vance acquisition

Morgan Stanley announced its acquisition of Eaton Vance in October 2020.

March 2021: Acquisition of Eaton Vance completed

In March 2021, Morgan Stanley completed its acquisition of Eaton Vance.

September 2022: SEC Charges Morgan Stanley for Failing to Protect Customer Data

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.

November 2023: Morgan Stanley Settles with Connecticut Over Data Security

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: Expected layoffs

Bloomberg announced Morgan Stanley expected more layoffs in mid-2023.

2023: Ranked in Fortune 500 and Forbes Global 2000

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

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

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.

December 2024: Ownership by Institutional Investors

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

2024: US$100 million in 1938 worth $1.74 billion in 2024

In 1938, Morgan Stanley was the lead underwriter for the distribution of US$100 million (~$1.74 billion in 2024) of debentures for the United States Steel Corporation.

2024: Value of 2018 FINRA Fine in 2024

In 2024, the value of the $10 million fine in December 2018 against Morgan Stanley was approximately $12.3 million.

2024: Value of Managed Assets in 2018

In 2024, the value of the tens of millions of dollars managed by Douglas E. Greenberg in 2018 was approximately $12.3 million.

February 2025: State Attorneys General Criticize Morgan Stanley for China Investments

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.

2025: Morgan Stanley Fined 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."