Morgan Stanley Investment Loss Claims
Morgan Stanley is an investment banking and retail brokerage firm. Arising
out of the enactment of the Glass-Steagall Act, Morgan Stanley separated
from JP Morgan in 1935 and became its own investment banking firm. Dean
Witter Reynolds was a brokerage firm that began in San Francisco in 1924
and catered to the middle class. In 1997, Morgan Stanley purchased Dean
Witter and became Morgan Stanley Dean Witter & Co. Out of a concern
for branding, the firm returned to the original name of Morgan Stanley in 2001.
Headquartered in New York City, the main areas of business for Morgan Stanley
today are global wealth management, institutional securities, and investment
management. The company is a leading issuer of credit cards, particularly
the Discover Card.
A securities brokerage firm licensed by FINRA, Morgan Stanley has a legal
duty to supervise its brokers and its brokers' recommendations to
clients to ensure compliance with and prevent violations of the rules
of the security industry. When an individual broker is negligent or acts
in an unlawful manner against the interests of the client and that client
suffers damages as a result of such wrongdoing, the firm may be held liable
for the investor's losses.
Morgan Stanley Investment Misconduct & Fraud
Morgan Stanley and its brokers have been the subject of various misconduct
claims in the past. In 2010, United States prosecutors began to investigate
Morgan Stanley's "Dead Presidents" deal. The deal involved misleading investors in the area of mortgage securities.
Prosecutors believed that Morgan Stanley placed bets against collateralized-debt
obligations (CDOs). Morgan Stanley did not market these deals, but they
did play a role in creating and betting against them.
Around the same time,
FINRA fined Morgan Stanley $800,000 for violating federal regulations regarding disclosing potential
conflicts of interest in analyst research notes. According to FINRA, Morgan Stanley failed to
provide honest and proper disclosures in more than 6,000 research reports
and more than 80 public appearances.
In 2011, Morgan Stanley had to pay in excess of
$1.3 million in fines and restitution because of excessive markup/down misconduct in bond transactions. "Markups"
and "Markdowns" describe bond transactions between customers
and brokers in which the customer pays a little more or somewhat less
than the broker's purchase price. Typical markups range from one to
five percent, but Morgan Stanley participated in excessive markups and
markdowns from five to 13.8 percent.
Need to recover your losses against Morgan Stanley?
Did you lose money because of investment misconduct by Morgan Stanley or
one of its brokers? Meyer Wilson is here to help. Our law firm is considered
an authority on these issues. We have the experience and resources necessary
to represent clients in investor claims against brokerage firms like Morgan
Stanley through The Financial Industry Regulatory Authority (FINRA), the
American Arbitration Association (AAA) and private arbitration. If you
are a resident of another country, Meyer Wilson may also be able to represent
you in claims against a U.S. brokerage firm through FINRA. To determine
whether you have a case against Morgan Stanley for your losses, call us
toll-free or complete our
online form for a free case evaluation.