http://www.usatoday.com/money/industries/brokerage/2003-05-01-morgan-apology_x.htm By Thor Valdmanis, USA TODAY NEW YORK â?? For months, securities regulators and banking rivals have quietly chafed at what they perceived as Morgan Stanley's arrogance and imperviousness in the face of a damaging Wall Street research scandal. No longer. In a rare public rebuke, Securities and Exchange Commission Chairman William Donaldson scolded Morgan Stanley CEO Philip Purcell on Wednesday for "a troubling lack of contrition" for misconduct detailed in this week's sweeping $1.4 billion Wall Street reform settlement. Purcell provoked the SEC's ire by telling an investors conference Monday that he did not see "anything in the settlement that will concern the retail investor about Morgan Stanley." In a letter to Purcell dated April 30, Donaldson wrote: "Your reported comments evidence a troubling lack of contrition and lead me to wonder about Morgan Stanley's commitment to compliance with the letter and spirit of the law." Among the more stunning revelations contained in the settlement findings was news that Morgan Stanley and four other brokerage firms paid rivals to publish positive research reports on companies whose shares Morgan and others issued to the public. The practice, which shocked even Wall Street insiders, helped hype Morgan's initial public offerings in the eyes of small investors. From 1999 through 2001, Morgan Stanley, the nation's second-largest brokerage firm, paid about $2.7 million to about 25 other investment banks for these so-called research guarantees, regulators said. In a written response to Donaldson Wednesday, Purcell said: "I deeply regret any public impression that the commission's complaint was not a matter of concern to retail investors," but stopped short of apologizing. A Morgan Stanley spokesman declined further comment. Securities regulators at the National Association of Securities Dealers and New York Attorney General Eliot Spitzer's office also expressed dismay at Purcell's comments made at the conference but said they fit a larger pattern. At the height of the scandal earlier this year, Morgan Stanley claimed in its annual report that it had survived investigations of analyst conflicts of interest with its "reputation for integrity" intact. That boast was particularly irritating for investigators who complained throughout the two-year Wall Street probe that Morgan Stanley failed to maintain adequate internal e-mail records as required by securities laws. With fewer documents available, Morgan Stanley was tougher to investigate than more cooperative firms such as Citigroup and Merrill Lynch.
Could be of interest to those who deal with Chase. is there some reason to get snotty, just because you don't see the relationship? I don't understand the attitudes of people on this board.
Hey breeze, I know what you meant and that's right...just little correction about who owns what... Morgan Stanley owns Discover JPMorgan Chase owns Chase
well excuse me, I guess I will keep my 2 cents too myself next time. Thought i would be helpful sharing the info for any discovercard holders.
I meant to click quote, but instead clicked "reply." This comment is being referred to "DJReverb", didnt mean it to the rest of you that commented.
Thanks for the great post. Don't let a thinks they know it all like DJReverb get to you. They hain't worth it!
Re: Re: Morgan Stanley CEO gets scolding thanks lbrown for your comments well spoken. I will not allow that user to intimidate me in what I post! Creditnet's slogan is "Power to the people", so Im going to use it.
Ok, great article, but what does it have to do with credit???? DJReverb ====== ===================== Every Thing. Click on the COMPOUND INTEREST link below for an eye opener.
1* is there some reason to get snotty, just because you don't see the relationship? 2*I don't understand the attitudes of people on this board. breeze ==================== 1*I might ask DJReverb: What does his snotty remark have to do with credit? 2*People who think they know it all and yet are ill informed have an attitude problem that causes them to make such snide remarks. Such snotty remarks reveal how little the maker knows of which he speaks, If one is truly informed on the subject then he knows not to make such ignorant statements.
Re: Morgan Stanley Maybe there's a way to apply this to credit. Morgan Stanley paid other firms to issue false research reports about the stocks it brought public. Well, if you default on your Discover account, maybe Morgan Stanley will pay other credit card companies to falsely report that you defaulted on your accounts with them too.
