Private Wealth Management

Morgan StanleySmith Barney

By Maxwell Rectenwald

History in the Making

• Morgan Stanley was founded in the U.S. by the Henry Morgan and Harold Stanley in 1935.

• After the Glass-Steagall Act was passed in 1933, commercial banks were not permitted to engage in a number of securities activities.

• Morgan Stanley handled 24% of all public offerings and private placements within 1 year of opening.

History in the Making

• Morgan Stanley entered the New York Stock Exchange in 1942.

• In 1996, Morgan Stanley acquired Van Kampen American Capital.

• In 2008, Morgan Stanley was forced to borrow $107 billion from the federal government.

• The company bought Smith Barney from Citigroup immediately following the recession in 2009.

Morgan Stanley Today

James Gorman CEO

• James Gorman is the current CEO and chairman of Morgan Stanley.

• He serves as the public leader of Morgan Stanley and helps communicate the company’s mission to the public.

• He is a different type of leader.

• He handled the company during the recession and oversaw its metamorphosis.

Ruth Porat CFO

• Ruth Porat is the current Chief Financial Officer.

• She is widely regarded as one of the most powerful women in finance.

• She is a key decision maker regarding all financial-based opportunities.

• Her role is to oversee capital, liquidity, funding and compliance with all capital requirements.

Jim RosenthalCOO

• Jim Rosenthal joined the company in the middle of the 2008 crisis.

• He is responsible for firmwide technology and operations.

• He took over for Tom Nides, who went to work for Hillary Clinton.

Greg FlemingPresident of Wealth Management

• Greg Fleming is currently in charge of both wealth management and investment management.

• He was a former COO for Merrill Lynch.

• He is responsible for overseeing the wealth management division, which is responsible for almost 40% of revenue.

The Financial Picture

24 Year Stock Price 1 Year Stock Price

Morgan Stanley Financial Facts

• Stock Ticker Symbol: MS

• Trades on the New York Stock Exchange

• Has had consistent revenues for the last 7 years (other than 2008)

• Manages $2 trillion in assets

Morgan Stanley Smith Barney

• In 2009, the company was shifting towards wealth management.

• They purchased 51% of Smith Barney from Citigroup, which doubled the amount of revenue stemming from wealth management.

• In 2013, they purchased the remaining 35% of remaining shares.

MS: The Investor’s Perspective

Safe Investment:• Very consistent returns• Has issued dividends every quarter• Strong Brand• Positive Press• Strong Leadership• Liquidity• Constantly Evolving• Foreign Markets

Recent News

• Morgan Stanley announced that its 2014 second quarter profit rose 131% from just a year earlier.

• JP Morgan Chase, Bank of America, Citigroup, and several more recorded lower second quarter profit.

• EPS was 60 cents per share, beating 55 cent estimate.

Recent News

• Started Richard B. Fisher Scholarship program grants

• Donated millions to hunger-relief programs

• Strengthened Communities: Newark

• Launched $100 million investment to expand access to healthcare

Blue Blood and Mutiny

• Novel written about Morgan Stanley in 2005

• Eight wealthy individuals including the ex-president looked to fire CEO

• Finance Thriller

• Depicts the Morgan Stanley employee’s in positive light

• Depicts Morgan Stanley as unified

Corporate Culture

• Corporate Culture can be defined as the shared values, beliefs and characteristics that separate a company from others.

• It is an invisible guideline on customer service and performance.

• I conducted three interviews in order to get a better understanding of Morgan Stanley’s corporate culture.

David Kaser and Richard Kaser

• David started his career on Wall Street

• 25 years of experience

• Richard joined him in 1991

• They also have four other team members

• Their focus: client goals and investment strategies

Phil NobleSenior Vice President

• Phil owned his own Wealth Management company before he sold his practice in 2011

• He currently is a member of the Morgan Stanley team in Toledo

• He has worked at three different fortune 500 companies

The Employee Perspective

Corporate Culture

• Revolves around trust• Proactive• Common Goals• Expansion of Resources• Stress Teamwork

Disciplines of Finance

Morgan Stanley operates in three main business segments:

• Institutional Securities• Wealth Management Group• Global Asset Management Products

Distribution Channels

• A Distribution Channel is the chain of business intermediaries through which a service passes to the end consumer.

• “Proprietary” shows ownership.

• Institutional market consists of larger buyers.

Morgan Stanley: Internship Opportunities

• Morgan Stanley advertises internships in all different sectors on its website.

• They have descriptions of the internship as well as “ A Day in the life” descriptions which go over daily responsibilities.

• They have 33 internships available.

Search

Deadlines and Information• The deadlines differ based on the internship• New internship opportunities are available

on a rolling basis • Deadlines for Summer 2015 internships start

in the late fall (November-January) • Website URL:

www.morganstanley.com/about/careers/internships.html