Difference between revisions of "Morgan Stanley"

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==Articles & resources==
 
==Articles & resources==
 +
*[[Written testimony of Morgan Stanley to Financial Crisis Inquiry Commission]]
 
===External resources===
 
===External resources===
 
* [http://www.docstoc.com/docs/4647166/Sold-Out---How-Wall-Street-and-Washington-Betrayed-America Sold Out - How Wall Street and Washington Betrayed America ], Consumer Education Foundation, March, 2009.
 
* [http://www.docstoc.com/docs/4647166/Sold-Out---How-Wall-Street-and-Washington-Betrayed-America Sold Out - How Wall Street and Washington Betrayed America ], Consumer Education Foundation, March, 2009.

Revision as of 01:23, 6 February 2010

{{#Badges:tobaccowiki|CoalSwarm}} Morgan Stanley is one of the world's top financial services providers. Some of the financial services that it provides are financial planning for individual investors and small-to-medium businesses and financial advisory services for corporate investors. It also has in-house private equity operations.[1]

Coal investments

Morgan Stanley is a major financier of new coal plant construction. New coal-fired power plants being funded by the company include:

Financial crisis and the bailout

Role in the financial crisis

High leverage

In 1975, the SEC’s trading and markets division ruled that investment banks must maintain a debt-to-net capital ratio of less than 12 to 1. In 2004, following extensive lobbying by the investment banks, the SEC under chairman Christopher Cox authorized five investment banks to develop their own net capital requirements. This enabled investment banks to push borrowing ratios to as high as 40 to 1.[2] These five investment banks were Goldman Sachs, Morgan Stanley, Lehman Brothers, Bear Stearns, and Merrill Lynch. This very high debt-to-reserves helped lead to the financial crisis of 2008 by weakening the ability of these institutions to recover from losses incurred when the risky CDO and CDS bets failed.[3][4]

Lee A. Pickard, who had been Director of the SEC’s Division of Market Regulation when the 1975 12-1 rule was ordered, said of the change, "The SEC modification in 2004 is the primary reason for all of the losses that have occurred."[5]

Bailout amounts

Morgan Stanley received $10 billion in TARP bailout funds.

Political influence

Campaign contributions

Decade-long campaign contribution total (1998-2008): $20,835,000.[6]

In September, 2009, Morgan Stanley's political action committee gave $110,000 in political contributions, approx 60% to Republicans opposing financial reform legislation. Half of Morgan stanley's donations went to members of the House Financial Services Committee, and $5,000 to House Minority Leader John Boehner of Ohio.[7]

In 2008 Morgan Stanley was included in the list of top TARP recipients in political contributions and lobbying, spending $6.8 million[8]. The amounts were $3,689,027 in political contributions and $3,120,000 for lobbying.

John J. Mack, Chairman and Chief Executive Officer of Morgan Stanley, was a Bush Ranger in 2004 having raised at least $200,000 for Bush's election. [9]

Morgan Stanley gave $491,830 to federal candidates in the 2006 election through its political action committee - 30% to Democrats, 69% to Republicans. [10]

Lobbying

Decade-long lobbying expenditure total (1998-2008): $28,635,440[6]

In 2008 Morgan Stanley was included in the list of top TARP recipients in political contributions and lobbying, spending $6.8 million[11]. The amounts were $3,689,027 in political contributions and $3,120,000 for lobbying.

The company spent $2,720,000 for lobbying in 2006. $640,000 went to seven outside lobbying firms with the remainder being spent using in-house lobbyists. [12]

Personnel

Key executives and 2006 pay: [13]

Board members:[14]

Contact details

1585 Broadway
New York, NY 10036
Phone: 212-761-4000
Fax: 212-762-8131
Web: http://www.morganstanley.com

Articles & resources

External resources

External articles

References

  1. ↑ Morgan Stanley profile, Hoovers, accessed October 2009.
  2. ↑ Stephen Labaton, Agency’s ’04 Rule Let Banks Pile Up New Debt, NY Times, October 8, 2008. Retrieved October 9, 2009
  3. ↑ Julie Satow, Ex-SEC Official Blames Agency for Blow-Up of Broker-Dealers, NY Sun, September 18, 2008. Retrieved October 9, 2009
  4. ↑ Ben Protess, ‘Flawed’ SEC Program Failed to Rein in Investment Banks, ProPublica, October 1, 2008. Retrieved October 9, 2009
  5. ↑ Julie Satow, Ex-SEC Official Blames Agency for Blow-Up of Broker-Dealers, NY Sun, September 18, 2008. Retrieved October 9, 2009
  6. ↑ Jump up to: 6.0 6.1 Sold Out - How Wall Street and Washington Betrayed America , Consumer Education Foundation, March, 2009.
  7. ↑ Brody Mullins and T.W. Farnam, Wall Street Steps Up Political Donations, Lobbying, Wall Street Journal, October 22, 2009, retrieved October 22, 2009.
  8. ↑ TARP Recipients Paid Out $114 Million for Politicking Last Year, Open Secrets, Feb. 4, 2009. Retrieved October 11, 2009.
  9. ↑ Pioneers and Rangers, Texans for Public Justice, accessed July 2007.
  10. ↑ 2006 PAC Summary Data, Open Secrets, accessed July 2007.
  11. ↑ TARP Recipients Paid Out $114 Million for Politicking Last Year, Open Secrets, Feb. 4, 2009. Retrieved October 11, 2009.
  12. ↑ Morgan Stanley lobbying expenses, Open Secrets.
  13. ↑ Morgan Stanley Key Executives, Yahoo Finance, accessed July 2007.
  14. ↑ Board of Directors, Morgan Stanley, accessed September 2008.

<tdo>resource_id=24878 resource_code=morgan_stanley search_term=Morgan Stanley</tdo>

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