Reuters reports that, according to its sources, the head of Morgan Stanley's German unit has offered to step down following an uproar over emails he reportedly exchanged with a regional politician, and the bank has not yet decided whether to accept his resignation.
44-year-old Dirk Notheis is one of Germany's best-connected dealmakers with close ties to Berlin, a fact that rivals say has helped Morgan Stanley snare mandates involving companies that are partially state-owned.
Emails published in the German newspapers Frankfurter Allgemeine Zeitung and Handelsblatt in the past week suggest Notheis gave strategic advice on moves by politicians in a way that has drawn sharp public criticism. The emails were not independently verified by Reuters.
Notheis is currently on a leave of absence.
In the meantime, the news agency also reports that Brazilian authorities want Morgan Stanley to return about $54m associated with a stock sale by shareholders of troubled lender Banco Cruzeiro do Sul, which was seized by the central bank this month, Folha de S.Paulo newspaper reported Sunday.
The share sale occurred in May, just two weeks before the central bank seized Cruzeiro do Sul and placed the mid-sized bank under the administration of banking insurance deposit fund FGC for 180 days after uncovering accounting irregularities.
Morgan Stanley was managing the Brazilian investment fund that acquired the shares, Folha said.
Finally, The Financial Times reports that Morgan Stanley Smith Barney is to allow its 18,000 financial advisers to engage with clients via Linkedin and Twitter.
The Alchemists: Three Central Bankers and a World on Fire
Hubris: How HBOS Wrecked the Best Bank in Britain
