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116-508: Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan , New York City. With offices in 41 countries and more than 90,000 employees, the firm's clients include corporations, governments, institutions, and individuals. Morgan Stanley ranked No. 61 in the 2023 Fortune 500 list of the largest United States corporations by total revenue and in

232-477: A direct air capture startup company, for an undisclosed price. The company's 3 divisions are as follows: Morgan Stanley's Institutional Securities is the most profitable business segment. This business segment provides institutions with investment banking services such as capital raising and financial advisory services such as mergers and acquisitions advisory, restructurings, real estate and project finance, and corporate lending. The segment also encompasses

348-552: A portable programming language for data processing. It was originally seen as a stopgap, but the Defense Department promptly pressured computer manufacturers to provide it, resulting in its widespread adoption. It was standardized in 1968 and has been revised five times. Expansions include support for structured and object-oriented programming . The current standard is ISO / IEC  1989:2023. COBOL statements have prose syntax such as MOVE x TO y , which

464-819: A "full-service" range including securities research , proprietary trading , and investment management . In the 21st century, the SEC filings of the major independent investment banks such as Goldman Sachs and Morgan Stanley reflect three product segments: In the United States, commercial banking and investment banking were separated by the Glass–Steagall Act , which was repealed in 1999. The repeal led to more " universal banks " offering an even greater range of services. Many large commercial banks have therefore developed investment banking divisions through acquisitions and hiring. Notable full-service investment banks with

580-514: A "strong anti-IBM bias" from some committee members (herself included). In one case, after Roy Goldfinger, author of the COMTRAN manual and intermediate-range committee member, attended a subcommittee meeting to support his language and encourage the use of algebraic expressions, Grace Hopper sent a memo to the short-range committee reiterating Sperry Rand's efforts to create a language based on English. In 1980, Grace Hopper commented that "COBOL 60

696-738: A $ 1.4 billion settlement of a suit brought by Eliot Spitzer , the Attorney General of New York , the National Association of Securities Dealers (now the Financial Industry Regulatory Authority (FINRA)), the United States Securities and Exchange Commission (SEC), and a number of state securities regulators, relating to intentionally misleading research motivated by a desire to win investment banking business with

812-467: A 24% market share (US$ 1.1 billion) in public offerings and private placements . The current Morgan Stanley is the result of the merger of the original Morgan Stanley with Dean Witter Discover & Co. in 1997. Dean Witter's chairman and CEO, Philip J. Purcell , became the chairman and CEO of the newly merged "Morgan Stanley Dean Witter Discover & Co." The new firm changed its name back to "Morgan Stanley" in 2001. The main areas of business for

928-537: A 42% slide in its share price in two days. CEO John J. Mack wrote in a memo to staff "we're in the midst of a market controlled by fear and rumours and short-sellers are driving our stock down." By September 19, 2008, the share price had slid 57% in four days, and the company was said to have explored merger possibilities with CITIC , Wachovia , HSBC , Standard Chartered , Banco Santander and Nomura . At one point, Hank Paulson offered Morgan Stanley to JPMorgan Chase at no cost, but JPMorgan's Jamie Dimon refused

1044-689: A US$ 9 billion physical check, the largest amount written via physical check at the time. The physical check was accepted by Robert A. Kindler , Global Head of Mergers and Acquisitions and Vice Chairman of Morgan Stanley, at the offices of Wachtell Lipton . Concerns over the completion of the Mitsubishi deal during the October 2008 stock market volatility caused a dramatic fall in Morgan Stanley's stock price to levels last seen in 1994. It recovered once Mitsubishi UFJ's 21% stake in Morgan Stanley

1160-563: A common business language. The delegation impressed Charles A. Phillips, director of the Data System Research Staff at the DoD, who thought that they "thoroughly understood" the DoD's problems. The DoD operated 225 computers, had 175 more on order, and had spent over $ 200 million on implementing programs to run on them. Portable programs would save time, reduce costs, and ease modernization. Charles Phillips agreed to sponsor

1276-469: A deal announced in October 2020. With the addition of Eaton Vance, Morgan Stanley now had $ 5.4 trillion of client assets across its Wealth Management and Investment Management segments. Morgan Stanley is mainly owned by institutional investors, who own around 60% of shares. The largest shareholders in December 2023 were: In 2003, Morgan Stanley agreed to pay $ 125 million to settle its portion of

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1392-410: A highly public campaign by former Morgan Stanley partners threatened to damage the firm and challenged his refusal to aggressively increase leverage, increase risk, enter the sub-prime mortgage business and make expensive acquisitions; the same strategies that forced Morgan Stanley into massive write-downs, related to the subprime mortgage crisis , by 2007. On December 19, 2006, Morgan Stanley announced

1508-566: A hub of European M&A activity, often facilitating the most capital movement and corporate restructuring in the area. Meanwhile, Asian cities are receiving a growing share of M&A activity. According to estimates published by the International Financial Services London , for the decade prior to the financial crisis in 2008, M&A was a primary source of investment banking revenue, often accounting for 40% of such revenue, but dropped during and after

1624-720: A key part of capital market transactions, involving debt structuring , exit financing, loan amendment, project finance , leveraged buy-outs , and sometimes portfolio hedging. The "Market Risk Team" provides services to investors via derivative solutions, portfolio management , portfolio consulting, and risk advisory. Well-known "Risk Groups" are at JPMorgan Chase , Morgan Stanley , Goldman Sachs and Barclays . J.P. Morgan IB Risk works with investment banking to execute transactions and advise investors, although its Finance & Operation risk groups focus on middle office functions involving internal, non-revenue generating, operational risk controls. The credit default swap , for instance,

1740-456: A key service in terms of advisory and strategy. While the research division may or may not generate revenue (based on the specific compliance policies at different banks), its resources are used to assist traders in trading, the sales force in suggesting ideas to customers, and investment bankers by covering their clients. Research also serves outside clients with investment advice (such as institutional investors and high-net-worth individuals) in

1856-429: A lead designer of COBOL, said Hopper "was not the mother, creator, or developer of Cobol." IBM's COMTRAN language, invented by Bob Bemer , was regarded as a competitor to FLOW-MATIC by a short-range committee made up of colleagues of Grace Hopper. Some of its features were not incorporated into COBOL so that it would not look like IBM had dominated the design process, and Jean Sammet said in 1981 that there had been

1972-651: A meeting of representatives from academia, computer users, and manufacturers at the University of Pennsylvania to organize a formal meeting on common business languages. Representatives included Grace Hopper (inventor of the English-like data processing language FLOW-MATIC ), Jean Sammet , and Saul Gorn . At the April meeting, the group asked the Department of Defense (DoD) to sponsor an effort to create

2088-576: A more robust file management system. The usefulness of the committee's work was a subject of great debate. While some members thought the language had too many compromises and was the result of design by committee , others felt it was better than the three languages examined. Some felt the language was too complex; others, too simple. Controversial features included those some considered useless or too advanced for data processing users. Such features included Boolean expressions , formulas , and table subscripts (indices). Another point of controversy

2204-533: A partnership with Longchamp Asset Management, a French-based asset manager that specializes in the distribution of UCITS hedge funds, and La Française AM, a multi-specialist asset manager with a 10-year track record in alternative investments. In March 2018, Morgan Stanley acquired Mesa West, a leading U.S. commercial real estate credit platform, adding to its existing investment strategies and product offerings across real assets and private credit. In March 2021, Morgan Stanley completed its acquisition of Eaton Vance ,

2320-1046: A percentage of revenue. As far back as 1960, 70% of Merrill Lynch 's revenue was derived from transaction commissions while "traditional investment banking" services accounted for 5%. However, Merrill Lynch was a relatively "retail-focused" firm with a large brokerage network. Investment banking is split into front office , middle office , and back office activities. While large service investment banks offer all lines of business, both "sell side" and "buy side", smaller sell-side advisory firms such as boutique investment banks and small broker-dealers focus on niche segments within investment banking and sales/trading/research, respectively. For example, Evercore (NYSE:EVR) acquired ISI International Strategy & Investment (ISI) in 2014 to expand their revenue into research-driven equity sales and trading. Investment banks offer services to both corporations issuing securities and investors buying securities. For corporations, investment bankers offer information on when and how to place their securities on

2436-516: A result of selling complex derivatives contracts to local municipalities in Europe and the US. Strategists advise external as well as internal clients on the strategies that can be adopted in various markets. Ranging from derivatives to specific industries, strategists place companies and industries in a quantitative framework with full consideration of the macroeconomic scene. This strategy often affects

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2552-606: A significant investment banking division (IBD) include JPMorgan Chase , Bank of America , Citigroup , Deutsche Bank , UBS (Acquired Credit Suisse ), and Barclays . After the financial crisis of 2007–08 and the subsequent passage of the Dodd-Frank Act of 2010 , regulations have limited certain investment banking operations, notably with the Volcker Rule's restrictions on proprietary trading. The traditional service of underwriting security issues has declined as

2668-503: A third from 2009, as companies pursued less deals and traded less. Differences in total revenue are likely due to different ways of classifying investment banking revenue, such as subtracting proprietary trading revenue. In terms of total revenue, SEC filings of the major independent investment banks in the United States show that investment banking (defined as M&A advisory services and security underwriting) made up only about 15–20% of total revenue for these banks from 1996 to 2006, with

2784-653: A total cleanup, and, by March 1963, it was reported that COBOL's syntax was as definable as ALGOL 's, although semantic ambiguities remained. COBOL is a difficult language to write a compiler for, due to the large syntax and many optional elements within syntactic constructs, as well as the need to generate efficient code for a language with many possible data representations, implicit type conversions, and necessary set-ups for I/O operations. Early COBOL compilers were primitive and slow. A 1962 US Navy evaluation found compilation speeds of 3–11 statements per minute. By mid-1964, they had increased to 11–1000 statements per minute. It

2900-1318: A trader after he buys or sells a product to a client and does not hedge his total exposure. Here, and in general, banks seek to maximize profitability for a given amount of risk on their balance sheet. Note here that the FRTB framework has underscored the distinction between the " Trading book " and the " Banking book " - i.e. assets intended for active trading, as opposed to assets expected to be held to maturity - and market risk capital requirements will differ accordingly. The necessity for numerical ability in sales and trading has created jobs for physics , computer science , mathematics , and engineering PhDs who act as "front office" quantitative analysts . The securities research division reviews companies and writes reports about their prospects, often with "buy", "hold", or "sell" ratings. Investment banks typically have sell-side analysts which cover various industries. Their sponsored funds or proprietary trading offices will also have buy-side research. Research also covers credit risk , fixed income , macroeconomics , and quantitative analysis , all of which are used internally and externally to advise clients; alongside "Equity", these may be separate "groups". The research group(s) typically provide

3016-412: A whole, despite their local readability. For years, COBOL has been assumed as a programming language for business operations in mainframes, although in recent years, many COBOL operations have been moved to cloud computing . In the late 1950s, computer users and manufacturers were becoming concerned about the rising cost of programming. A 1959 survey had found that in any data processing installation,

3132-468: Is 95% FLOW-MATIC" and that COMTRAN had had an "extremely small" influence. Furthermore, she said that she would claim that work was influenced by both FLOW-MATIC and COMTRAN only to "keep other people happy [so they] wouldn't try to knock us out.". Features from COMTRAN incorporated into COBOL included formulas, the PICTURE clause , an improved IF statement, which obviated the need for GO TOs , and

3248-479: Is a compiled English-like computer programming language designed for business use. It is an imperative , procedural , and, since 2002, object-oriented language. COBOL is primarily used in business, finance, and administrative systems for companies and governments. COBOL is still widely used in applications deployed on mainframe computers , such as large-scale batch and transaction processing jobs. Many large financial institutions were developing new systems in

3364-498: Is a commodity business, but structuring and trading derivatives have higher margins because each over-the-counter contract has to be uniquely structured and could involve complex pay-off and risk profiles. One growth area is private investment in public equity (PIPEs, otherwise known as Regulation D or Regulation S). Such transactions are privately negotiated between companies and accredited investors . Banks also earned revenue by securitizing debt, particularly mortgage debt prior to

3480-685: Is a famous credit risk hedging solution for clients invented by J.P. Morgan's Blythe Masters during the 1990s. The Loan Risk Solutions group within Barclays' investment banking division and Risk Management and Financing group housed in Goldman Sach's securities division are client-driven franchises. Risk management groups such as credit risk, operational risk, internal risk control, and legal risk are restrained to internal business functions — including firm balance-sheet risk analysis and assigning

3596-578: Is buying and selling products. Sales is the term for the investment bank's sales force, whose primary job is to call on institutional and high-net-worth investors to suggest trading ideas (on a caveat emptor basis) and take orders. Sales desks then communicate their clients' orders to the appropriate trading rooms , which can price and execute trades, or structure new products that fit a specific need. Sales make deals tailored to their corporate customers' needs, that is, their terms are often specific. Focusing on their customer relationship, they may deal on

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3712-793: Is made by any contributor or by the CODASYL COBOL Committee as to the accuracy and functioning of the programming system and language. Moreover, no responsibility is assumed by any contributor or by the committee in connection therewith. The authors and copyright holders of the copyrighted material used herein are as follows: FLOW-MATIC (trademark of Unisys Corporation ), Programming for the UNIVAC (R) I and II, Data Automation Systems, copyrighted 1958, 1959, by Unisys Corporation; IBM Commercial Translator Form No. F28-8013, copyrighted 1959 by IBM; FACT, DSI 27A5260-2760, copyrighted 1960 by Minneapolis-Honeywell. They have specifically authorized

3828-486: Is not a comprehensive summary of all middle-office functions within an investment bank, as specific desks within front and back offices may participate in internal functions. The back office data-checks trades that have been conducted, ensuring that they are not wrong, and transacts the required transfers. Many banks have outsourced operations. It is, however, a critical part of the bank. Every major investment bank has considerable amounts of in-house software , created by

3944-408: Is raised for the corporation include those listed aside. This work may involve, i.a., subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. A pitch book , also called a confidential information memorandum (CIM), is a document that highlights the relevant financial information, past transaction experience, and background of the deal team to market

4060-646: Is the control function for the Markets' business and conducts review of sales and trading activities utilizing the VaR model . Other Middle office "Risk Groups" include country risk, operational risk, and counterparty risks which may or may not exist on a bank to bank basis. Front office risk teams, on the other hand, engage in revenue-generating activities involving debt structuring, restructuring, syndicated loans , and securitization for clients such as corporates, governments, and hedge funds. Here "Credit Risk Solutions", are

4176-453: Is unclear who coined the name "COBOL", although Bob Bemer later claimed it had been his suggestion. In October, the intermediate-range committee received copies of the FACT language specification created by Roy Nutt . Its features impressed the committee so much that they passed a resolution to base COBOL on it. This was a blow to the short-range committee, who had made good progress on

4292-462: The 2007–2008 financial crisis . In March 2021, Morgan Stanley completed its acquisition of Eaton Vance , a deal announced in October 2020. With the addition of Eaton Vance, Morgan Stanley now had $ 5.4 trillion of client assets across its Wealth Management and Investment Management segments. The firm conducted layoffs in December 2022, and Bloomberg announced the firm expected more layoffs in mid-2023. On May 2, 2023, an individual familiar with

4408-557: The Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 ( Dodd–Frank Act of 2010 ), the Volcker Rule asserts some institutional separation of investment banking services from commercial banking. All investment banking activity is classed as either "sell side" or "buy side". The " sell side " involves trading securities for cash or for other securities (e.g. facilitating transactions, market-making), or

4524-603: The Securities Association of China is a self-regulatory organization whose members are largely investment banks. Global investment banking revenue increased for the fifth year running in 2007, to a record US$ 84 billion, which was up 22% on the previous year and more than double the level in 2003. Subsequent to their exposure to United States sub-prime securities investments, many investment banks have experienced losses. As of late 2012, global revenues for investment banks were estimated at $ 240 billion, down about

4640-782: The Troubled Asset Relief Program (TARP). Surviving U.S. investment banks such as Goldman Sachs and Morgan Stanley converted to traditional bank holding companies to accept TARP relief. Similar situations have occurred across the globe with countries rescuing their banking industry. Initially, banks received part of a $ 700 billion TARP intended to stabilize the economy and thaw the frozen credit markets. Eventually, taxpayer assistance to banks reached nearly $ 13 trillion—most without much scrutiny— lending did not increase, and credit markets remained frozen. COBOL COBOL ( / ˈ k oʊ b ɒ l , - b ɔː l / ; an acronym for "common business-oriented language")

4756-717: The U.S. Air Force , the Navy's David Taylor Model Basin , and the National Bureau of Standards (now the National Institute of Standards and Technology). The committee was chaired by Joseph Wegstein of the U.S. National Bureau of Standards. Work began by investigating data descriptions, statements, existing applications, and user experiences. The committee mainly examined the FLOW-MATIC , AIMACO , and COMTRAN programming languages. The FLOW-MATIC language

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4872-460: The U.S. Congress passed the Glass–Steagall Act in 1933, it was no longer possible for a corporation to have investment banking and commercial banking businesses under a single holding entity. J.P. Morgan & Co. chose the commercial banking business over the investment banking business. As a result, some of the employees of J.P. Morgan & Co., most notably Henry S. Morgan and Harold Stanley , left J.P. Morgan & Co. and joined others from

4988-721: The World Trade Center , and was the largest tenant of the WTC complex. Most of these offices had been inherited from Dean Witter which had occupied the space since the mid-1980s. The firm lost 13 employees during the September 11 attacks in 2001 (Thomas F. Swift, Wesley Mercer, Jennifer de Jesus, Joseph DiPilato, Nolbert Salomon, Godwin Forde, Steve R. Strauss, Lindsay C. Herkness, Albert Joseph, Jorge Velazquez, Titus Davidson, Charles Laurencin and Security Director Rick Rescorla ) in

5104-863: The COBOL Maintenance Committee to answer questions from users and vendors and to improve and expand the specifications. During 1960, the list of manufacturers planning to build COBOL compilers grew. By September, five more manufacturers had joined CODASYL ( Bendix , Control Data Corporation , General Electric (GE), National Cash Register , and Philco ), and all represented manufacturers had announced COBOL compilers. GE and IBM planned to integrate COBOL into their own languages, GECOM and COMTRAN, respectively. In contrast, International Computers and Tabulators planned to replace their language, CODEL, with COBOL. Meanwhile, RCA and Sperry Rand worked on creating COBOL compilers. The first COBOL program ran on 17 August on an RCA 501. On 6 and 7 December,

5220-561: The Drexel partners to form Morgan Stanley. The firm formally opened its doors for business on September 16, 1935, at 2 Wall Street , New York City, just down the street from J.P. Morgan. The firm was involved with the distribution of 1938 US$ 100 million (~$ 1.7 billion in 2023) of debentures for the United States Steel Corporation as the lead underwriter . The firm also obtained the distinction of being

5336-720: The Equities and the Fixed Income divisions of the firm; trading is anticipated to maintain its position as the "engine room" of the company. Among the major U.S. banks, Morgan Stanley sources the highest portion of revenues from fixed-income underwriting, which was reported at 6.0% of total revenue in FY12. The Global Wealth Management Group provides stockbrokerage and investment advisory services. This segment provides financial and wealth planning services to its clients, who are primarily high-net-worth individuals. On January 13, 2009,

5452-588: The Global Wealth Management Group was merged with Citi's Smith Barney to form Morgan Stanley Smith Barney. Morgan Stanley owned 51% of the entity, and Citi held 49%. On May 31, 2012, Morgan Stanley exercised its option to purchase an additional 14% of the joint venture from Citi. In June 2013, Morgan Stanley stated it had secured all regulatory approvals to buy Citigroup's remaining 35% stake in Smith Barney and would proceed to finalize

5568-600: The Morgan & Cie, International in Paris in an attempt to enter the European securities market. The firm acquired Brooks, Harvey & Co., Inc. in 1967 and established a presence in the real estate business. The sales and trading business is believed to be the brainchild of Bob Baldwin. In 1996, Morgan Stanley acquired Van Kampen American Capital. On February 5, 1997, the company merged with Dean Witter Discover & Co. ,

5684-537: The Morgan Stanley and Van Kampen brands until 2009. On October 19, 2009, Morgan Stanley announced that it would sell Van Kampen to Invesco for $ 1.5 billion (~$ 2.07 billion in 2023), but would retain the Morgan Stanley brand. It provides asset management products and services to institutional investors worldwide, including pension plans, corporations, private funds, non-profit organizations, foundations, endowments, governmental agencies, insurance companies and banks. On September 29, 2013, Morgan Stanley announced

5800-916: The National Investment Banking Association (NIBA). In Europe, the European Forum of Securities Associations was formed in 2007 by various European trade associations. Several European trade associations (principally the London Investment Banking Association and the European SIFMA affiliate) combined in November 2009 to form the Association for Financial Markets in Europe (AFME). In the securities industry in China ,

5916-534: The US$ 250 ;million AT&T's debt offering. Morgan Stanley credits itself with having created the first viable computer model for financial analysis in 1962, thereby starting a new trend in the field of financial analysis. Future president and chairman Dick Fisher contributed to the computer model as a young employee, learning the Fortran and COBOL programming languages at IBM . In 1967, it established

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6032-458: The United States of America Standards Institute (now ANSI ) formed groups to create standards. ANSI produced USA Standard COBOL X3.23 in August 1968, which became the cornerstone for later versions. This version was known as American National Standard (ANS) COBOL and was adopted by ISO in 1972. By 1970, COBOL had become the most widely used programming language in the world. Independently of

6148-458: The area. In December 2015, it was reported that Morgan Stanley would be cutting around 25 percent of its fixed income jobs before month end. In January 2016, the company reported that it had offices in "more than" 43 countries. In October 2020, the company completed its acquisition of E*Trade , a deal announced in February 2020 for $ 13 billion, the biggest acquisition by a U.S. bank since

6264-407: The bank to a potential M&A client; if the pitch is successful, the bank arranges the deal for the client. Recent legal and regulatory developments in the U.S. will likely alter the makeup of the group of arrangers and financiers willing to arrange and provide financing for certain highly leveraged transactions. On behalf of the bank and its clients, a large investment bank's primary function

6380-444: The bank's profitability. See also Chinese wall § Finance . This area of the bank includes treasury management , internal controls (such as Risk), and internal corporate strategy. Corporate treasury is responsible for an investment bank's funding, capital structure management, and liquidity risk monitoring; it is (co)responsible for the bank's funds transfer pricing (FTP) framework. Internal control tracks and analyzes

6496-413: The capital flows of the firm, the finance division is the principal adviser to senior management on essential areas such as controlling the firm's global risk exposure and the profitability and structure of the firm's various businesses via dedicated trading desk product control teams. In the United States and United Kingdom, a comptroller (or financial controller) is a senior position, often reporting to

6612-512: The chief financial officer. Risk management involves analyzing the market and credit risk that an investment bank or its clients take onto their balance sheet during transactions or trades. Middle office "Credit Risk" focuses around capital markets activities, such as syndicated loans , bond issuance, restructuring , and leveraged finance. These are not considered "front office" as they tend not to be client-facing and rather 'control' banking functions from taking too much risk. "Market Risk"

6728-431: The collapse of several notable investment banks, such as the bankruptcy of Lehman Brothers (one of the largest investment banks in the world) and the hurried fire sale of Merrill Lynch and the much smaller Bear Stearns to much larger banks, which effectively rescued them from bankruptcy. The entire financial services industry, including numerous investment banks, was bailed out by government taxpayer funded loans through

6844-541: The collection of fees for advising on a transaction, contrary to a commercial or retail bank. From the passage of Glass–Steagall Act in 1933 until its repeal in 1999 by the Gramm–Leach–Bliley Act , the United States maintained a separation between investment banking and commercial banks. Other industrialized countries, including G7 countries, have historically not maintained such a separation. As part of

6960-459: The committee was too large to make any further progress quickly. A frustrated Howard Bromberg bought a $ 15 tombstone with "COBOL" engraved on it and sent it to Charles Phillips to demonstrate his displeasure. A subcommittee was formed to analyze existing languages and was made up of six individuals: The subcommittee did most of the work creating the specification, leaving the short-range committee to review and modify their work before producing

7076-625: The companies covered. In 2004, Morgan Stanley settled a sex discrimination suit brought by the Equal Employment Opportunity Commission for $ 54 million (~$ 83.5 million in 2023). In 2007, the firm agreed to pay $ 46 million (~$ 65.1 million in 2023) to settle a class action lawsuit brought by eight female brokers. In July 2004, the firm paid NASD a $ 2.2 million (~$ 3.4 million in 2023) fine for more than 1,800 late disclosures of reportable information about its brokers. In September 2004,

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7192-785: The deal. In February 2019, the company announced the acquisition of Solium Capital, a manager of employee stock plans, for $ 900 million (~$ 1.06 billion in 2023). In October 2020, the company completed its acquisition of E-Trade , a deal announced in February 2020 for $ 13 billion, the biggest acquisition by a U.S. bank since the 2007–2008 financial crisis . Investment Management provides asset management products and services in equity, fixed income, alternative investments, real estate investment, and private equity to institutional and retail clients through third-party retail distribution channels, intermediaries and Morgan Stanley's institutional distribution channel. Morgan Stanley's asset management activities were principally conducted under

7308-466: The entire activity the Committee on Data Systems Languages , or CODASYL , and to form an executive committee. The short-range committee members represented six computer manufacturers and three government agencies. The computer manufacturers were Burroughs Corporation , IBM , Minneapolis-Honeywell (Honeywell Labs), RCA , Sperry Rand , and Sylvania Electric Products . The government agencies were

7424-484: The executive committee on 4 September. They fell short of expectations: Joseph Wegstein noted that "it contains rough spots and requires some additions," and Bob Bemer later described them as a "hodgepodge." The committee was given until December to improve it. At a mid-September meeting, the committee discussed the new language's name. Suggestions included "BUSY" (Business System), "INFOSYL" (Information System Language), and "COCOSYL" (Common Computer Systems Language). It

7540-486: The financial advisor training program. Employees of the program had claimed the firm expected trainees to clock overtime hours without additional pay and handle various administrative expenses as a result of their expected duties. A $ 42.5 million settlement was reached and Morgan Stanley admitted no fault. Investment bank Unlike commercial banks and retail banks , investment banks do not take deposits . The revenue model of an investment bank comes mostly from

7656-399: The financial crisis. Equity underwriting revenue ranged from 30% to 38%, and fixed-income underwriting accounted for the remaining revenue. Revenues have been affected by the introduction of new products with higher margins ; however, these innovations are often copied quickly by competing banks, pushing down trading margins. For example, brokerages commissions for bond and equity trading

7772-495: The financial crisis. Investment banks have become concerned that lenders are securitizing in-house, driving the investment banks to pursue vertical integration by becoming lenders, which has been allowed in the United States since the repeal of the Glass–Steagall Act in 1999. According to The Wall Street Journal , in terms of total M&A advisory fees for the whole of 2020, the top ten investment banks were as listed in

7888-452: The finished specification. The specifications were approved by the executive committee on 8 January 1960, and sent to the government printing office, which printed them as COBOL 60 . The language's stated objectives were to allow efficient, portable programs to be easily written, to allow users to move to new systems with minimal effort and cost, and to be suitable for inexperienced programmers. The CODASYL Executive Committee later created

8004-486: The firm paid a $ 19 million (~$ 29.4 million in 2023) fine imposed by NYSE for failure to deliver prospectuses to customers in registered offerings, inaccurate reporting of certain program trading information, short sale violations, failures to fingerprint new employees and failure to timely file exchange forms. The New York Stock Exchange imposed a $ 19 million (~$ 28.5 million in 2023) fine on January 12, 2005, for alleged regulatory and supervisory lapses. At

8120-662: The firm today are institutional securities , wealth management and investment management . The bank is considered systemically important by the Financial Stability Board . Morgan Stanley is a financial services corporation that, through its affiliates and subsidiaries, advises, and originates, trades, manages, and distributes capital for institutions, governments, and individuals. The company operates in three business segments: Institutional Securities, Wealth Management, and Investment Management. Morgan Stanley traces its roots to J.P. Morgan & Co. After

8236-416: The hopes that these clients will execute suggested trade ideas through the sales and trading division of the bank, and thereby generate revenue for the firm. With MiFID II requiring sell-side research teams in banks to charge for research, the business model for research is increasingly becoming revenue-generating. External rankings of researchers are becoming increasingly important, and banks have started

8352-623: The judge as a sanction against Morgan Stanley after the firm's attorneys infuriated the court by failing and refusing to produce documents, and falsely telling the court that certain documents did not exist. The ruling was overturned on March 21, 2007, and Morgan Stanley was no longer required to pay the $ 1.57 billion (~$ 2.22 billion in 2023) verdict. Morgan Stanley settled a class-action lawsuit on March 2, 2006. It had been filed in California by both current and former Morgan Stanley employees for unfair labor practices instituted to those in

8468-478: The language as late as 2006, but most programming in COBOL today is purely to maintain existing applications. Programs are being moved to new platforms, rewritten in modern languages, or replaced with other software. COBOL was designed in 1959 by CODASYL and was partly based on the programming language FLOW-MATIC , designed by Grace Hopper . It was created as part of a U.S. Department of Defense effort to create

8584-417: The language should make maximal use of English, be capable of change, be machine-independent, and be easy to use, even at the expense of power. The meeting resulted in the creation of a steering committee and short, intermediate, and long-range committees. The short-range committee was given until September (three months) to produce specifications for an interim language, which would then be improved upon by

8700-527: The lead syndicate in the 1939 U.S. rail financing. The firm went through a reorganization in 1941 to allow for more activity in its securities business. The firm was led by Perry Hall, the last founder to lead Morgan Stanley, from 1951 until 1961. During this period, the firm co-managed the World Bank's triple-A-rated bonds offering of 1952, as well as coming up with General Motors ' US$ 300 million debt issue, US$ 231 million IBM stock offering, and

8816-400: The majority of revenue (60+% in some years) brought in by "trading" which includes brokerage commissions and proprietary trading; the proprietary trading is estimated to provide a significant portion of this revenue. The United States generated 46% of global revenue in 2009, down from 56% in 1999. Europe (with Middle East and Africa ) generated about a third, while Asian countries generated

8932-412: The matter reported that Morgan Stanley has outlined its intention to reduce approximately 3,000 positions by the end of June. The projected reduction constitutes roughly 5 percent of the bank's overall workforce, with financial advisors and support staff exempted from these staff cuts. In October 2024, Morgan Stanley entered into a 40,000-tonne carbon dioxide removal purchase agreement with Climeworks ,

9048-565: The meeting, and tasked the delegation with drafting the agenda. On 28 and 29 May 1959 (exactly one year after the Zürich ALGOL 58 meeting), a meeting was held at the Pentagon to discuss the creation of a common programming language for business. It was attended by 41 people and was chaired by Phillips. The Department of Defense was concerned about whether it could run the same data processing programs on different computers. FORTRAN ,

9164-500: The name was chosen to be the combination of the two predecessor companies to avoid tension between the two firms. Eventually, in 2001 "Dean Witter" was further dropped and the name became "Morgan Stanley" for unrevealed reasons. The merged firm began expanding overseas operations: in 1999, Mack set up a joint venture in India with local partner JM Financial . Morgan Stanley had offices located on 35 floors across buildings 1, 2, and 5 of

9280-613: The new subsidiary. Aisha de Sequeira , a managing director in the Mergers and Acquisitions group, was made Head of Investment Banking. To cope with the write-downs during the subprime mortgage crisis, Morgan Stanley announced on December 19, 2007, that it would receive a US$ 5 billion capital infusion from the China Investment Corporation in exchange for securities that would be convertible to 9.9% of its shares in 2010. The bank's Process Driven Trading unit

9396-558: The offer. Morgan Stanley and Goldman Sachs , the last two major investment banks in the US, both announced on September 22, 2008, that they would become traditional bank holding companies regulated by the Federal Reserve . The Federal Reserve's approval of their bid to become banks ended the ascendancy of securities firms, 75 years after Congress separated them from deposit-taking lenders, and capped weeks of chaos that sent Lehman Brothers Holdings Inc. into bankruptcy and led to

9512-451: The only mainstream language at the time, lacked the features needed to write such programs. Representatives enthusiastically described a language that could work in a wide variety of environments, from banking and insurance to utilities and inventory control. They agreed unanimously that more people should be able to program and that the new language should not be restricted by the limitations of contemporary technology. A majority agreed that

9628-562: The open market, a highly regulated process by the SEC to ensure transparency is provided to investors. Therefore, investment bankers play a very important role in issuing new security offerings. Front office is generally described as a revenue -generating role. There are two main areas within front office: investment banking and markets. Corporate finance is the aspect of investment banks which involves helping customers raise funds in capital markets and giving advice on mergers and acquisitions (M&A); transactions in which capital

9744-468: The other committees. Their official mission, however, was to identify the strengths and weaknesses of existing programming languages; it did not explicitly direct them to create a new language. The deadline was met with disbelief by the short-range committee. One member, Betty Holberton , described the three-month deadline as "gross optimism" and doubted that the language really would be a stopgap. The steering committee met on 4 June and agreed to name

9860-477: The process of monetizing research publications, client interaction times, meetings with clients etc. There is a potential conflict of interest between the investment bank and its analysis, in that published analysis can impact the performance of a security (in the secondary markets or an initial public offering) or influence the relationship between the banker and its corporate clients, and vice versa regarding material non-public information (MNPI), thereby affecting

9976-399: The programming cost US$ 800,000 on average and that translating programs to run on new hardware would cost US$ 600,000. At a time when new programming languages were proliferating , the same survey suggested that if a common business-oriented language were used, conversion would be far cheaper and faster. On 8 April 1959, Mary K. Hawes , a computer scientist at Burroughs Corporation , called

10092-411: The promotion of securities (e.g. underwriting, research, etc.). The " buy side " involves the provision of advice to institutions that buy investment services. Private equity funds, mutual funds , life insurance companies, unit trusts , and hedge funds are the most common types of buy-side entities . An investment bank can also be split into private and public functions with a screen separating

10208-498: The remaining 21%. The industry is heavily concentrated in a small number of major financial centers, including New York City , City of London , Frankfurt , Hong Kong , Singapore , and Tokyo . The majority of the world's largest Bulge Bracket investment banks and their investment managers are headquartered in New York and are also important participants in other financial centers. The city of London has historically served as

10324-404: The rushed sale of Merrill Lynch & Co. to Bank of America Corp. MUFG Bank , Japan's largest bank, invested $ 9 billion in a direct purchase of a 21% ownership stake in Morgan Stanley on September 29, 2008. The payment from MUFG was supposed to be wired electronically; however, because it needed to be made on an emergency basis on Columbus Day when banks were closed in the US, MUFG cut

10440-491: The same COBOL program (albeit with minor changes) ran on an RCA computer and a Remington-Rand Univac computer, demonstrating that compatibility could be achieved. The relative influence of the languages that were used is still indicated in the recommended advisory printed in all COBOL reference manuals: COBOL is an industry language and is not the property of any company or group of companies, or of any organization or group of organizations. No warranty, expressed or implied,

10556-485: The same year ranked #30 in Forbes Global 2000 . The original Morgan Stanley, formed by J.P. Morgan & Co. partners Henry Sturgis Morgan (a grandson of J.P. Morgan ), Harold Stanley , and others, came into existence on September 16, 1935, in response to the Glass–Steagall Act , which required the splitting of American commercial and investment banking businesses. In its first year, the company operated with

10672-426: The specification. Despite being technically superior, FACT had not been created with portability in mind or through manufacturer and user consensus. It also lacked a demonstrable implementation, allowing supporters of a FLOW-MATIC-based COBOL to overturn the resolution. RCA representative Howard Bromberg also blocked FACT, so that RCA's work on a COBOL implementation would not go to waste. It soon became apparent that

10788-455: The spin-off of its Discover Card unit. The bank completed the spinoff of Discover Financial on June 30, 2007. In February 2007, Morgan Stanley announced the end of its Indian joint venture: the bank acquired its local partner's stake in the institutional brokerage business, and sold its own stake in the other businesses. The bank then set up a wholly-owned subsidiary; the country head of Investment Management, Narayan Ramachandran, became CEO of

10904-407: The spun-off financial services business of Sears Roebuck . Dean Witter's chairman and CEO, Philip J. Purcell , continued to hold the same roles in the newly merged "Morgan Stanley Dean Witter Discover & Co." Morgan Stanley's president John J. Mack became the firm's president and chief operating officer. In 1998, the name of the firm was changed to "Morgan Stanley Dean Witter & Co." Originally,

11020-588: The standard specifies 43 statements, 87 functions, and just one class. Academic computer scientists were generally uninterested in business applications when COBOL was created and were not involved in its design; it was (effectively) designed from the ground up as a computer language for business, with an emphasis on inputs and outputs, whose only data types were numbers and strings of text. COBOL has been criticized for its verbosity, design process, and poor support for structured programming . These weaknesses result in monolithic programs that are hard to comprehend as

11136-708: The table below. Many of these firms belong either to the Bulge Bracket (upper tier), Middle Market (mid-level businesses), or are elite boutique investment banks (independent advisory investment banks). The above list is just a ranking of the advisory arm (M&A advisory, syndicated loans, equity capital markets, and debt capital markets) of each bank and does not include the generally much larger portion of revenues from sales & trading and asset management . Mergers and acquisitions and capital markets are also often covered by The Wall Street Journal and Bloomberg . The financial crisis of 2007–2008 led to

11252-614: The technology team, who are also responsible for technical support . Technology has changed considerably in the last few years as more sales and trading desks are using electronic processing. Some trades are initiated by complex algorithms for hedging purposes. Firms are responsible for compliance with local and foreign government regulations and internal regulations. The investment banking industry can be broken up into Bulge Bracket (upper tier), Middle Market (mid-level businesses), and boutique market (specialized businesses) categories. There are various trade associations throughout

11368-458: The time, it was the largest fine ever imposed by the NYSE. On May 16, 2005, a Florida jury found that Morgan Stanley failed to give adequate information to Ronald Perelman about Sunbeam thereby defrauding him and causing damages to him of $ 604 million (~$ 906 million in 2023). In addition, punitive damages were added for total damages of $ 1.450 billion. This verdict was directed by

11484-596: The towers, while 2,687 were successfully evacuated by Rick Rescorla. The surviving employees moved to temporary headquarters in the vicinity. In 2005 Morgan Stanley moved 2,300 of its employees back to lower Manhattan , at that time the largest such move. In 2003, New York–Presbyterian Hospital named the Morgan Stanley Children's Hospital in recognition of the firm's sponsorship of the hospital, which largely funded its construction through philanthropy. The initiative began under CEO Philip J. Purcell and

11600-465: The trading cap — that are independent of client needs, even though these groups may be responsible for deal approval that directly affects capital market activities. Similarly, the Internal corporate strategy group, tackling firm management and profit strategy, unlike corporate strategy groups that advise clients, is non-revenue regenerating yet a key functional role within investment banks. This list

11716-499: The two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas, such as stock analysis, deal with public information. An advisor who provides investment banking services in the United States must be a licensed broker-dealer and subject to U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulation. The Dutch East India Company

11832-545: The use of this material, in whole or in part, in the COBOL specifications. Such authorization extends to the reproduction and use of COBOL specifications in programming manuals or similar publications. It is rather unlikely that Cobol will be around by the end of the decade. Anonymous, June 1960 Many logical flaws were found in COBOL 60 , leading General Electric's Charles Katz to warn that it could not be interpreted unambiguously. A reluctant short-term committee performed

11948-408: The way the firm will operate in the market, the direction it would like to take in terms of its proprietary and flow positions, the suggestions salespersons give to clients, as well as the way structurers create new products. Banks also undertake risk through proprietary trading , performed by a special set of traders who do not interface with clients and through "principal risk"—risk undertaken by

12064-605: The whole range of asset types. (In distinction, trades negotiated by market-makers usually bear standard terms; in market making , traders will buy and sell financial products with the goal of making money on each trade. See under trading desk .) Structuring has been a relatively recent activity as derivatives have come into play, with highly technical and numerate employees working on creating complex structured products which typically offer much greater margins and returns than underlying cash securities, so-called "yield enhancement". In 2010, investment banks came under pressure as

12180-689: The world which represent the industry in lobbying , facilitate industry standards, and publish statistics. The International Council of Securities Associations (ICSA) is a global group of trade associations. In the United States, the Securities Industry and Financial Markets Association (SIFMA) is likely the most significant; however, several of the large investment banks are members of the American Bankers Association Securities Association (ABASA), while small investment banks are members of

12296-436: The world. In November 2013, Morgan Stanley announced that it would invest $ 1 billion (~$ 1.29 billion in 2023) to help improve affordable housing as part of a wider push to encourage investment in efforts that aid economic, social and environmental sustainability. In July 2014, Morgan Stanley's Asian private equity arm announced it had raised around $ 1.7 billion (~$ 2.16 billion in 2023) for its fourth fund in

12412-501: Was among several on Wall Street caught in a short squeeze , reportedly losing nearly $ 300 million in one day. The bubble's subsequent collapse was considered to be a central component of the 2007–2008 financial crisis . The bank was contracted by the United States Treasury in August 2008 to advise the government on potential rescue strategies for Fannie Mae and Freddie Mac . Within days, Morgan Stanley itself

12528-479: Was at risk of failure, with rapidly changing prospects, regulatory model and ownership stakes over the course of four weeks from mid-September to mid-October 2008. The bank Morgan Stanley was reported to have lost over 80% of its market value during the 2007–2008 financial crisis . On September 17, 2008, the British evening-news analysis program Newsnight reported that Morgan Stanley was facing difficulties after

12644-463: Was completed on October 14, 2008. Morgan Stanley borrowed $ 107.3 billion from the Fed during the 2008 crisis, the most of any bank, according to data compiled by Bloomberg News Service and published August 22, 2011. In 2009, Morgan Stanley purchased Smith Barney from Citigroup and the new broker-dealer operates under the name Morgan Stanley Smith Barney , the largest wealth management business in

12760-515: Was completed under John Mack . Employees at the firm have been involved with the hospital since the 1990s and personally donated to the construction of the current child-friendly building, which opened in November 2003. The company found itself in the midst of a management crisis starting in March 2005 that resulted in a loss of the firm's staff. Purcell resigned as CEO of Morgan Stanley in June 2005 when

12876-399: Was designed to be self-documenting and highly readable. However, it is verbose and uses over 300 reserved words compared to the succinct and mathematically inspired syntax of other languages. The COBOL code is split into four divisions (identification, environment, data, and procedure), containing a rigid hierarchy of sections, paragraphs, and sentences. Lacking a large standard library ,

12992-432: Was observed that increasing memory would drastically increase speed and that compilation costs varied wildly: costs per statement were between $ 0.23 and $ 18.91. In late 1962, IBM announced that COBOL would be their primary development language and that development of COMTRAN would cease. The COBOL specification was revised three times in the five years after its publication. COBOL-60 was replaced in 1961 by COBOL-61. This

13108-484: Was particularly influential because it had been implemented and because AIMACO was a derivative of it with only minor changes. FLOW-MATIC's inventor, Grace Hopper, also served as a technical adviser to the committee. FLOW-MATIC's major contributions to COBOL were long variable names, English words for commands, and the separation of data descriptions and instructions. Hopper is sometimes called "the mother of COBOL" or "the grandmother of COBOL", although Jean Sammet ,

13224-466: Was the first company to issue bonds and shares of stock to the general public. It was also the first publicly traded company , being the first company to be listed on an official stock exchange . Investment banking has changed over the years, beginning as a partnership firm focused on underwriting security issuance, i.e. initial public offerings (IPOs) and secondary market offerings , brokerage , and mergers and acquisitions, and evolving into

13340-567: Was then replaced by the COBOL-61 Extended specifications in 1963, which introduced the sort and report writer facilities. The added facilities corrected flaws identified by Honeywell in late 1959 in a letter to the short-range committee. COBOL Edition 1965 brought further clarifications to the specifications and introduced facilities for handling mass storage files and tables . Efforts began to standardize COBOL to overcome incompatibilities between versions. In late 1962, both ISO and

13456-509: Was whether to make keywords context-sensitive and the effect that would have on readability. Although context-sensitive keywords were rejected, the approach was later used in PL/I and partially in COBOL from 2002. Little consideration was given to interactivity , interaction with operating systems (few existed at that time), and functions (thought of as purely mathematical and of no use in data processing). The specifications were presented to

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