A New York Times article chronicles abuse allegations of a financial advisor and Morgan Stanley's decision to retain him. Douglas E. Greenberg is a member of the firm's “Chairman’s Club,” which recognizes top producers who meet identified "conduct and compliance standards.”
But, for years, Morgan Stanley executives knew of allegations of abuse against Greenberg—not by employees but by four women who had relationships with him and had sought protection against him. Greenberg has also been charged with violating restraining orders.
You may be thinking that these external relationships should not impact Greenberg's job. The article presents a different perspective:
But employees in the finance industry—especially those who manage money for clients—are judged in part on their character. That puts the onus on companies, and regulators, to police their conduct even outside the office.
Only after an inquiry from a Times reporter did the company place Greenberg on administrative leave. A spokesperson said, "We are committed to maintaining a safe and professional work environment and will take appropriate action based on the facts of the matter.”
- How could Greenberg's behavior affect the firm?
- What's your view of Greenberg's position at the firm? What should the executive team do?
- How is this situation a potential matter of integrity for Morgan Stanley?