Morgan Stanley

Morgan Stanley was founded to address the new securities requirements coming out of the Glass-Steagall Act, which required the separation of commercial and investment banking activities. As a result of this act, Morgan Stanley was established by a group of partners from J.P. Morgan & Co., with Harold Stanley and Henry S. Morgan leading the founding team. The firm began its operations with 24 employees and a clear focus on corporate finance and securities.

On February 25, 1986, Morgan Stanley became a public company through an initial public offering (IPO) on the New York Stock Exchange. This marked a significant transition for the firm as it shifted from being a partnership to a publicly traded corporation. The IPO was a pivotal moment in its history, allowing the firm to raise capital, expand its operations, and offer shares to the investing public.

In 1997, Morgan Stanley merged with Dean Witter, Discover & Co., a retail brokerage firm. The merger was valued at $10 billion and was aimed at combining Dean Witter's retail brokerage business with Morgan Stanley's investment banking and institutional securities operation. The new company was named Morgan Stanley Dean Witter & Co., creating a financial services behemoth with the goal of serving both retail and institutional clients.

In September 2008, amidst the global financial crisis, Morgan Stanley converted into a bank holding company. This strategic move was made to gain access to Federal Reserve funding and stabilize its operations during a time of market turmoil. The conversion allowed Morgan Stanley to gain greater financial stability by giving it the ability to take customer deposits and broaden its funding base, aligning closer to the traditional banking model.

Morgan Stanley expanded its international footprint in 2009 by acquiring a larger stake in China International Capital Corp (CICC) for $1 billion. This move aimed to strengthen its presence in the rapidly growing Chinese market and increase its exposure to Asia's financial markets. The investment was part of Morgan Stanley's broader strategy to capitalize on global growth opportunities and enhance its international influence.

Morgan Stanley announced the acquisition of E*TRADE, a leading online brokerage, for approximately $13 billion. The acquisition was intended to enhance Morgan Stanley's wealth management business and broaden its access to the direct-to-consumer segment. This move was a strategic attempt to diversify its revenue streams and strengthen its position in the wealth management sector, leveraging E*TRADE's technology and client base.

On October 8, 2020, Morgan Stanley agreed to acquire Eaton Vance, a well-known asset management firm, for $7 billion. The deal aimed to significantly enhance Morgan Stanley's investment management capabilities and build a well-rounded investment platform catering to a broad range of client needs. The acquisition was viewed as a move to bolster its position in asset management, diversifying and expanding its offerings.

Morgan Stanley was among the major financial institutions that were affected by the collapse of Archegos Capital Management in March 2021. The collapse caused significant disruptions and financial losses in the banking industry due to the leveraged positions and total return swaps Archegos had engaged in. Morgan Stanley reportedly lost nearly $911 million from this event, spotlighting the risks associated with prime brokerage services.

In June 2021, Morgan Stanley announced its commitment to achieving net-zero financed emissions by 2050. As part of this commitment, the firm aimed to align its lending and investment portfolio with the goals of the Paris Agreement. Morgan Stanley was the first major U.S. bank to join the Partnership for Carbon Accounting Financials, highlighting its dedication to addressing climate change and environmental sustainability.

Morgan Stanley reported a record annual revenue of $59.8 billion for the year 2021. The year's end results included significant gains from its institutional securities, investment management, and wealth management divisions. This record revenue was propelled by strong client activity, successful integration of acquisitions, and expanded product and service offerings, demonstrating the firm's robust financial performance and market position.