Morgan Stanley Wealth Management facts for kids
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| Private | |
| Industry | Financial services |
| Founded | 2009 |
| Founder | Henry S. Morgan, Harold Stanley, Charles D. Barney, Edward B. Smith |
| Headquarters |
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U.S.
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Area served
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Worldwide |
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Key people
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James P. Gorman (chairman) |
| Products | Retail brokerage, asset management, investment banking |
| Revenue | US$17,242 billion (2018) |
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Operating income
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US$4,521 billion (2018) |
| US$3,472 billion (2018) | |
| AUM | US$2.05 trillion (2014) |
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Number of employees
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17,646 (2011) |
| Parent | Morgan Stanley |
Morgan Stanley Wealth Management is a big company that helps people manage their money. It's a part of Morgan Stanley, a large global financial firm. This company focuses on "wealth management," which means they help individuals and families handle their investments and savings.
On January 13, 2009, Morgan Stanley and another company called Citigroup decided to join forces. Citigroup sold a big part of its Smith Barney business to Morgan Stanley. This created a new company called Morgan Stanley Smith Barney. This new company became very large. It had 17,646 financial advisors. These advisors helped manage about $2 trillion for their clients. Their clients include individuals, small businesses, and even large companies and charities.
Later, on September 25, 2012, the U.S. part of this business got a new name. It was officially renamed "Morgan Stanley Wealth Management." However, the official name for its broker-dealer license remained "Morgan Stanley Smith Barney LLC."
How the Company Started
The history of Morgan Stanley Wealth Management involves several older companies. One important part was Smith Barney & Co. This company was formed in 1938. It was created when two older firms, Charles D. Barney & Co. and Edward B. Smith & Co., merged. Charles D. Barney & Co. started in 1873 in New York and Philadelphia. Edward B. Smith & Co. began in 1892. It became very important in helping companies sell their stocks in 1934.
In 1975, Smith Barney merged again with Harris, Upham & Co. This created Smith Barney, Harris Upham & Co. In the 1980s, this company was famous for its TV commercials. An actor named John Houseman would say, "They make money the old-fashioned way. They earn it."
In the late 1980s, Smith Barney was owned by a company called Primerica Corporation. Primerica was later bought by Commercial Credit. In 1993, this larger company bought another big brokerage firm called Shearson from American Express. Shearson included the business of an even older company, E.F. Hutton. By the end of 1993, the combined company was known as Travelers Group Inc. But the part that helped people with their money still used the Smith Barney name.
In September 1997, Travelers Group bought Salomon Inc. This led to the creation of Salomon Smith Barney. In April 1998, Travelers Group merged with Citicorp. This huge merger created Citigroup, which became one of the largest financial companies in the world.
Joining Morgan Stanley
Around 2008, many financial companies faced big challenges. Citigroup, which owned Smith Barney, needed to sell some of its businesses to get money. So, on January 13, 2009, Citigroup and Morgan Stanley announced a big plan. They decided to combine Smith Barney with Morgan Stanley's wealth management group. Morgan Stanley paid Citigroup $2.7 billion to own 51% of this new joint company. This new company was named Morgan Stanley Smith Barney.
Morgan Stanley also faced some financial difficulties at that time. But they received help from another company, Mitsubishi UFJ Financial Group. Mitsubishi UFJ Financial Group invested $9 billion in Morgan Stanley in 2008. This helped Morgan Stanley be in a stronger position for the new partnership.
On June 1, 2009, Morgan Stanley and Citigroup officially launched their joint venture. This new company brought together Morgan Stanley's wealth management unit and Citi's Smith Barney brokerage division. The combined business was very large. It made about $14 billion in revenue. It had 18,500 financial advisors and 1,000 offices around the world. It served about 6.8 million households.
Later, on September 17, 2009, Citigroup announced that it would sell its remaining shares in the joint company to Morgan Stanley. This meant Morgan Stanley would fully own the wealth management business.
