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Morgan Stanley is an international banking financial holding company based in New York.
Business in Russia
Main article: "Morgan Stanley Bank"
History
2024: Staff reductions in the asset management unit
In February 2024, it was announced that Morgan Stanley planned to cut several hundred jobs, the first such move under Chief Executive Ted Piquet.
The cuts will affect less than 1% of employees in the asset management division, which has about 40,000 people and is the company's largest division, the source said.
2023
Losses in China
Payment of compensation in the amount of $6.5 million for unsafe disposal of equipment with personal data
On November 16, 2023, the New York Attorney General's Office announced that the American financial conglomerate Morgan Stanley would pay $6.5 million in compensation for the unsafe disposal of equipment containing unencrypted personal information. In the third hands could be personal information about millions of customers of the company.
Morgan Stanley has enlisted a third-party firm to decommission outdated computer hardware - thousands of hard drives and servers - that was subsequently found to have no experience in safely destroying data, it said. The financial conglomerate was unable to properly monitor the work of this contractor and monitor the destruction of personal information. As a result, part of Morgan Stanley's computer equipment containing confidential information was sold at auction. Morgan Stanley learned about the problem only after one of the buyers of the equipment found personal data on the drive and contacted company representatives.
Another similar incident is reported: during the decommissioning of equipment, Morgan Stanley identified more than 40 servers containing unencrypted customer information. A multi-state investigation found that Morgan Stanley failed to provide adequate controls in the inventory of equipment. The case file emphasizes that, subject to proper safety requirements, both events could have been prevented.
In addition to paying the fine, Morgan Stanley is obliged to strengthen measures to protect confidential information. These are, in particular, the use of encryption, regular software updates, the implementation of an incident response plan, etc.[1]
The tenth largest bank in the world
5% staff cut due to US banking crisis
In early May 2023, it became known that the American financial conglomerate Morgan Stanley is planning another round of cuts: this time the headcount will decrease by about 5%.
According to Bloomberg, the dismissal of employees is a forced measure associated with the deteriorating economic situation and the banking crisis in the United States. Knowledgeable sources say that about 3,000 people will lose their jobs at Morgan Stanley. To a large extent, the reduction of the staff will affect the investment banking division and the securities department. At the same time, the layoffs will not affect Morgan Stanley's asset management unit, which includes consultants. It is planned to complete the restructuring by the end of June 2023. A representative of the financial conglomerate, which at the end of 2022 included almost 82.5 thousand employees, declined to comment.
In April 2023, Morgan Stanley CFO Sharon Yeshaya stated that "cost management" is a priority for the organization, given the growing market uncertainty and increased inflation. Morgan Stanley CEO James Gorman said in December 2022 that the bank will carry out "modest" job cuts around the world without naming an exact figure. According to him, against the background of the current macroeconomic situation, activity in the financial sector has fallen, and recovery is not expected until the second half of 2023 or even until 2024.
It is noted that Wall Street banks suffered from a decrease in the intensity of transactions, as investors became more cautious. However, the initial public offering also practically stopped, because startups postpone entering the market until the mood of investors improves.[2]
2022
Losing a dispute over a domain msfinancements.com
The US National Arbitration Forum issued a verdict in the case initiated by Morgan Stanley. Considered one of the world's richest and most influential companies as of November 2022, this global financial conglomerate has filed a complaint under UDRP's Unified Domain Dispute Resolution Policy on the domain name msfinancements.com. The abbreviation MS is often used to refer to Morgan Stanley, and the French word financements means, of course, "finance." This already indicated a serious chance of victory. This was announced on November 16, 2022 by the Coordination Center for the National Domain of the Internet (CC).
The plaintiff's interests were represented by the law firm Cowan, Liebowitz & Latman, P.C. I. The domain registrant did not respond to a notice to begin proceedings.
Arbitrator Nicholas J. T. Smith gave himself the labor to delve into the details of the case, oblivious to the plaintiff's and his representatives' influence and the defendant's rather strange behavior. And I came to the conclusion that the situation is not at all unambiguous. On the msfinancements.com domain there is a completely legitimate site dedicated to the provision of financial services. It is led by two financial advisers and traders named Medji Bamba and Sarah Pascual. Thus, the abbreviation MS is formed from the first letters of the names of business owners, and the word financements indicates the scope of their activities.
In addition, although the abbreviation MS is used to refer to Morgan Stanley, the company does not own the corresponding trademark. And finally, no evidence that the domain was registered or used to the detriment of Morgan Stanley's interests, the plaintiff was also unable to present.
As a result, the arbitrator dismissed the complaint, Domain Name Wire reported. Nicholas J.T. Smith separately noted that the UDRP procedure serves to prosecute cases of cybersquatting. In this case, there was no evidence of cybersquatting. If Morgan Stanley is sure that there is an encroachment on its intellectual property, then this issue should be addressed to the courts.
Decrease in interest in EPAM Systems to 0.7%
On May 4, 2022, it became known that the American investment Morgan Stanley had almost completely withdrawn from the capital of an offshore developer ON the Belarusian with roots. This EPAM Systems is stated in materials published on the website of the American Securities Commission (SEC). More. here
Loss of $120 million on savings of $100 thousand on the disposal of hard drives
On January 5, 2022, it became known that Morgan Stanley agreed to pay compensation in the amount of $60 million in connection with two data leaks as a result of incidents related to the decommissioning of the data center. The bank continues to consider itself innocent and denies wrongdoing.
In the first incident, during the decommissioning of two data centers (data centers) in 2016, all information, including customer data, that fell into the hands of third-party organizations was not erased from hard drives. In the second incident, during a hardware upgrade, a server with client data that could have been unencrypted due to a software error was lost in one of the branches.
Due to the inability to properly decommission the two data centers, the bank has already been fined $60 million by the Office of the Comptroller of the United States of America (OCC). The regulator accused the bank of "failing to implement proper oversight." Because of the violation, eight lawsuits were brought against the bank, which were combined into one class action lawsuit. The bank has been accused of "ignoring industry standards" over the proper disposition of IT assets (ITADs).
According to the documents, the bank abandoned IBM services in favor of an "unknown and unskilled supplier" in order to decommission its IT equipment as part of "profit-oriented solutions" in order to save $100,000. Morgan Stanley then contracted Triple Crown to dismantle and dispose of the equipment. However, rather than disposing of the equipment, Triple Crown sold the equipment to AnythingIT and told the bank the equipment had been disposed of. In turn, AnythingIT, without deleting data from hard drives, sold the equipment to KruseCom.
It is not known for certain how the KruseCom equipment was used - it was either sold to someone else or destroyed. Despite admitting that some of the lost equipment was never recovered, the bank continues to insist that no harm was done to customers. A preliminary settlement agreement for the class-action lawsuit was filed on Jan. 7 evening in federal court in Manhattan. The agreement is due to take effect after approval by a district judge.[3]
2021
Launch of the company in conjunction with Nasdaq to trade shares of companies prior to their IPO
On July 21, 2021, it became known that the Nasdaq exchange entered into an agreement with major American banks, including Goldman Sachs and Morgan Stanley, to develop its platform allowing people to trade shares in private companies that enjoy great interest from investors seeking to make high returns on investments. Read more here.
Corporate Customer Data Breach
In mid-July 2021, Morgan Stanley reported that some corporate customer data was stolen in a data breach from a third-party supplier.
The data theft was due to problems with Guidehouse, a company that provides account services for Morgan Stanley's StockPlan Connect Business. The data breach took place in January 2021 and was originally discovered by Guidehouse in March, and a link to Morgan Stanley's data was discovered later in May. Morgan Stanley informed the victims in a July 2 letter.
The stolen data includes customer names, addresses, date of birth and company names. Hackers exploited a vulnerability in the Accessory software used by Guidehouse. The form of the attack was not disclosed, but it is known that the Clop ransomware group was involved in previous attacks related to the Accellion software.
Guidehouse claims they found no trace of the stolen data being shared in the public domain. However, during previous Clop attacks, stolen data was published on the dark web and used for resale. Morgan Stanley has taken action to track signs of the stolen data being published online. Known victims of the Accellion software-related data breach include Bombardier, Jones Day, the Washington state auditor's office, Qualys and Shell. At the time of the cyberattacks, 300 customers were using vulnerable software, about 100 of them suffered at the hands of hackers.
 | Although Morgan Stanley's customer information was encrypted, the encryption key for these files was also stolen, said Stephen Chenette, co-founder and CTO of the AttackIQ security optimization platform. - Organizations should take proactive approaches to protecting their data and be particularly vigilant when testing security controls that protect encryption keys.[4] |  |
In January 2022, Morgan Stanley agreed to pay $60 million to customers whose data was compromised by leaks. The plaintiffs were about 15 million clients of the bank.
Customers will be able to receive insurance protection against fraud for two years, each of the plaintiffs will be able to apply for a refund of $10,000.
Access to offices in New York is open only for vaccinated against COVID-19
In June 2021, it was announced that Morgan Stanley employees and customers would not be able to enter the bank's offices in New York if they were not fully vaccinated against COVID-19. Those who have not been fully vaccinated will have to work remotely.
The new rules will enter into force on July 12, such a policy will remove restrictions related to the coronavirus - in particular, wearing masks and maintaining distance inside office premises.
2020
Plan to move €100bn of assets from Britain to Frankfurt
In December 2020, it became known that Morgan Stanley plans to transfer about 100 billion euros (120 billion) dollars of assets to Frankfurt, becoming the last of the Wall Street banks to redirect business from. Great Britain
The US lender expects to transfer the bulk of its assets in the first quarter of 2021, when the transition period for Britain's exit from the European Union is likely to end.
The move aligns with efforts by several other U.S. banks, such as JPMorgan Chase & Co. and Goldman Sachs Group Inc. to strengthen its operations in the EU as part of Brexit.
Other banks that will support Germany's financial hub include Citigroup Inc., UBS Group AG and Standard Chartered Plc.
Eaton Vance purchase for $7 billion
In October 2020, the American bank Morgan Stanley agreed to purchase one of the oldest US investment companies Eaton Vance for about $7 billion, the bank said in a statement. Read more here.
Investing in Ecwid Site Builder
On May 21, 2020, Ecwid announced that it had raised $42 million in investments after the Russian service for creating online stores began to experience "exceptional growth" amid the COVID-19 crisis. Investors included the Morgan Stanley Fund. Read more here.
Acquisition of E-Trade
Morgan Stanley announced the purchase of the financial corporation E-Trade for $13 billion, which was a major deal for the American investment bank since the global financial crisis. This became known on February 20, 2020. Read more here.
2017
According to information as of February 2017, Morgan Stanley manages assets in the amount of $1.4 billion. The company owns the world's largest brokerage service.
2008
Until 2008, the company functioned as an investment bank.
Notes
- ↑ Attorney General James and Multistate Coalition Secure $6.5 Million from Morgan Stanley for Failing to Protect Customer Data
- ↑ Morgan Stanley Plans 3,000 More Job Cuts as Dealmaking Slumps
- ↑ Morgan Stanley agrees $60m settlement over data center decommissioning breach
- ↑ Morgan Stanley discloses data breach following attack on third-party vendor
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