Riding the Waves: Morgan Stanley's Texting Drama Unveiled.
?Picture this: the speedy universe of Money Road, where consistently is a bet and fortunes remain in a critical state. Let's move on to Morgan Stanley, where junior bankers have experienced a roller coaster of a year. With James Gorman, the President of very nearly 14 years, going to step down, there's a buzz among the group. The explanation? In September 2022, the Securities and Exchange Commission (SEC) assessed a colossal fine of $125 million for violating business-related record-keeping regulations on messaging apps.
This fine wasn't just about the cash for Morgan Stanley; It caused a number of problems within the business. Gorman's unusual action of handing the fine to the employees stoked the pot even more. Some insiders described this decision as a "witch-hunt" that began in early 2022, when the SEC investigation was first announced, escalating the already charged atmosphere.
Imagine now receiving an email with the ominous subject line "legal wants to talk." Hence the chills. Many of them ended up in lawyers' offices where they were confronted with a lot of questions about using personal devices to talk to coworkers and bosses instead of receiving the expected training. Like candy, fines were slapped on the wrist all the way up to a staggering $1 million.
Employees argued that they were fined without adequate warnings or training, and complaints poured in. A few guaranteed their 'offenses' were pretty much as minor as getting a call from their chief or answering innocuous messages about business related cheerful hours. It's interesting to note that other banks with similar fines, such as Goldman Sachs and JPMorgan, did not target individual employees as severely.