Remember the sh*t-storm Wells Fargo recently found itself in? You should, because it just happened last month, and it's an ongoing storm ' sh*t. And now Morgan Stanley is getting a little taste.
A Morgan Stanley unit was accused by Massachusetts officials of forcing its financial advisers into high-pressure sales contests to cross-sell products to clients. The accusation on Monday against Morgan Stanley Smith Barney LLC, the New York-based bank’s retail brokerage, increases the scrutiny on an industry tactic that has recently backfired for others including Wells Fargo & Co., which agreed last month to pay $185 million after federal and local authorities found the firm’s cross-selling culture helped push employees to open unauthorized accounts...The high-pressure sales culture attracted scrutiny after authorities blamed San Francisco-based Wells Fargo’s cross-selling goals for encouraging employees to potentially open more than 2 million accounts without customers’ knowledge. Wells Fargo Chief Executive Officer John Stumpf was summoned to Washington for two Congressional hearings to explain the practices. Jim Wiggins, a Morgan Stanley spokesman, said the company objects to the allegations and intends to defend itself “vigorously.”