Morgan Stanley is a New York-based financial institution with operations on six continents. Along with Goldman Sachs, in late September 2008 Morgan Stanley converted from an investment bank into a bank holding company. The move brings both banks into the more traditional banking world, and subjects them to greater oversight by banking regulators and the Federal Reserve. But becoming a bank holding company also gives companies greater flexibility to re-organize their operations, or, for example, to merge with or absorb other banks.

In late October 2008 Morgan Stanley announced that it would participate in the Treasury Department’s Capital Purchase Program, and would receive $10 billion under the program. On June 9, 2009, the company returned the entire $10 billion in funding. Additionally, in December 2008, Morgan Stanley announced it would be participating in the Federal Deposit Insurance Company’s (FDIC) Temporary Liquidity Guarantee Program.

According to Fortune 500’s annual rankings for 2008, Morgan Stanley was the country’s 21^st largest U.S. company, as measured by total revenue. And Fortune 500 puts Morgan Stanley behind only Goldman Sachs in size among just securities companies.

In early January, Morgan Stanley began discussing a merger with Citigroup’s brokerage division. Citigroup itself has already received $45 billion under the Treasury’s Troubled Asset Relief Program (TARP). The merger would create the largest brokerage firm in the U.S., according to industry experts. Estimates put the value of the merged companies at $16 to $20 billion.

12-28-08 TARP Participation 8-K Filing

12-5-08 FDIC Liquidity Program Participation 8-K Filing

2008 3rd Quarter Morgan Stanley 10-Q

2008 2nd Quarter MorganStanley 10-Q

2008 1st Quarter MorganStanley 10-Q

2007 Morgan Stanley Annual Report 10-K

►Federal contracts

USAspending.gov (last accessed 01/13/2009)

►Lobbying reports (if any)

American Capitol Group | American Capitol Group II  | Capitol Tax Partners | DCI Group LLC | Eris Group | Morgan Stanley & CO. | The Baptista Group | The Kate Moss Co.

►Political Contributions

Center for Responsive Politics (last accessed (01/13/2009

Morgan Stanley Political Contributions
Morgan Stanley PAC

►Related Articles

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January 16, 2009 Report Finds Many Companies Avoid Paying Billions in Taxes (Washington Post)

January 14, 2008 Lawmakers Question How Morgan Paid for a Deal (NY Times)

January 13, 2009, Citi confirms Smith Barney merger talks with Morgan Stanley (BusinessJournal)

January 12, 2009, Citi shares fall despite talks with Morgan Stanley (Yahoo Finance)

January 12, 2009, Making a Monster Brokerage (Reuters)

January 12, 2009, Time May Be Right for Morgan Stanley (Wall Street Journal)

January 12, 2009, Citi-Morgan talks seen leading to wave of deals  (Associated Press)

January 11, 2009, Morgan Stanley could pay $2-3 billion for Smith Barney (Reuters)

January 11, 2009, A sector spooked and struggling to survive (Financial Times)

December 9, 2008 Morgan Stanley Executives’ Stock Bonuses Fall Below $1 Million (Bloomberg)

September 22, 2008 Morgan Stanley, Goldman Sachs Say There’s No Such Thing as an Investment Bank

Last Updated March 9, 2009