#smithbarney

  Morgan Stanley is one of the world's largest financial services firms, providing investment banking, wealth management, and investment advice to clients around the globe. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company was originally known as Morgan Stanley & Co., and it quickly rose to become a powerhouse on Wall Street. But how did it get to this point? Let's take a look at the history of Morgan Stanley.  

Henry Morgan and Harold Stanley in 1935. Photo by Morgan Stanley. Facebook.  

Origins: 1935 - 1946

Morgan Stanley & Co. was formed in 1935 when Henry S. Morgan and Harold Stanley joined forces to create a new investment banking firm. Their first client was the leading international bank of England, The Bank of England. This initial deal marked the beginning of a long and successful partnership between the two firms. In 1937, the company opened its offices in New York City, and by 1940 the firm had offices in numerous other cities around the globe.  

War Bond sellers, Tyndall Field, Florida WWII. Photo by Richard. Wikimedia.  

World War II: 1946 - 1960

During World War II, Morgan Stanley & Co. played a crucial role in selling war bonds to help finance the Allied forces’ efforts. They also developed innovative financial strategies to fund defense spending and reconstruction efforts. After the war, the firm continued to expand its reach and influence in the world of finance. It became a public company in 1946 and was listed on the New York Stock Exchange in 1973.  

Morgan Stanley and Lehman Brothers Buildings, Canary Wharf, London. Photo by Jim Linwood. Flickr.  

Growth: 1960 - Present

In the 1960s, Morgan Stanley & Co. began to focus on global financial markets, particularly corporate mergers, and acquisitions. Over time, it became one of the top investment banks in the world with a strong presence in Europe and Asia as well as North America. In 2005, the bank acquired Smith Barney from Citigroup for $13 billion, further increasing its market share in wealth management services. Today, the company is still going strong with offices across five continents and over 60 countries around the world. It has become a leader in global investment banking and continues to grow as a financial services powerhouse.  

Milestones & Achievements

From its humble beginnings as a small firm to its current status as a global financial giant, Morgan Stanley’s major milestones and achievements have been nothing short of remarkable.  

China Construction Bank, Hong Kong. Photo by J. Gustavo Góngora. Flickr.   IPO for China Construction Bank In 2005, Morgan Stanley was selected to lead the initial public offering (IPO) for China Construction Bank, the first IPO for a Chinese state-controlled bank. This was an especially impressive achievement given that this IPO was not only the world’s largest at that time but also one of the most important IPOs ever offered in Asia. By successfully executing this IPO, Morgan Stanley helped raise nearly $9 billion for China Construction Bank and established itself as a leader in Asian financial markets.  

Smith Barney-Citigroup Building. Former Travellers HQ bought by Citigroup. Photo by Wally Gobetz. Flickr.   Acquisition of Smith Barney In 2008, Morgan Stanley acquired Smith Barney—a division of Citigroup—for approximately $2.7 billion. This acquisition made Morgan Stanley one of the largest retail brokerage firms in North America with 17 million customers and over $2 trillion in client assets under management. This acquisition allowed Morgan Stanley to expand its presence in retail banking, wealth management, and other consumer services.  

Uber HQ in San Francisco. Photo by Oliver Damian. Flickr.   Venture Capital Investment in Uber (2013) In 2013, the company invested $258 million in Uber Technologies Inc., which at that time had already become one of Silicon Valley's hottest startups. This venture capital investment gave Morgan Stanley a stake in Uber's business worth billions of dollars when it went public six years later. Through this smart investment, the company was able to capitalize on Uber's meteoric rise and reap huge rewards down the line.  

Morgan Stanley ticker, Times Square. Photo by JiahuiH. Flickr.  

Recent History (2001-Today)

Morgan Stanley continued to grow throughout the 2000s despite some major setbacks due to poor investments during the global financial crisis of 2008-2009. In 2009, it sold its Discover Card business to JPMorgan Chase for $2.7 billion to focus more on its core businesses of investment banking and wealth management. The Smith Barney purchase from Citigroup Inc. was a move that made the companies step-up to now being one of the world's largest wealth managers with over $1.18 trillion in assets under management.  

Conclusion