Company: Morgan Stanley
- Henry S. Morgan
- Harold Stanley
- Parry Hall
Industry: Investment Banking; Financial Services
In the field of investment banking, Morgan Stanley is one of the readily recognizable brands in the market.
After J.P. Morgan & Co. chose to focus on retail banking after the Glass-Steagall Act disallowed corporations to hold investment banking and retail banking under a single holding group, J.P. Morgan employees Henry Morgan and Harold Stanley invested with the Drexel partners to form Morgan Stanley in 1935. The firm showed a lot of promise in its founding year, when it achieved almost a quarter of the market share (amounting to over $1 billion) among public offerings.
Morgan Stanley in post-war America was led by one of its founders, Parry Hall. During the 50’s, the company engaged itself in several significant projects. The World Bank’s $50 million triple-A-rated bonds that were offered in 1952 were co-managed by Morgan Stanley. Companies such as General Motors, IBM and AT&T also worked closely with Morgan Stanley in those years as well. The company was also responsible for introducing the first feasible computer-based system for financial analysis.
Throughout the 60’s and 70’s, Morgan Stanley slowly but surely expanded its reach across the globe. Its international operations started in Paris with the establishment of Morgan & Cie, International. In 1970, it managed to enter the Japanese market by opening an office in Tokyo.
At present, Morgan Stanley has three major business areas: Institutional Securities, Global Wealth Management and Asset Management. In the present decade, the company has made major milestones in its field such as co-managing the Google IPO, the largest Internet IPO in U.S. history. In 2007, Morgan Stanley also announced that the China Investment Corporation will infuse $5 billion in capital in exchange to securities that can be converted to 9.9% of its shares three years after the agreement.