Morgan Stanley to Sell Spanish Retail Brokerage to La Caixa

London —

Morgan Stanley (NYSE: MS) today announced that it has reached an agreement to sell Morgan Stanley Wealth Management S.V., S.A.U., its Spanish onshore mass affluent wealth management business, to La Caixa.  Terms of the transaction, which is scheduled to close during the second quarter of 2008, were not disclosed.  Morgan Stanley’s institutional businesses in Spain, including investment banking, capital markets, sales & trading and asset management, are unaffected by the transaction. 

“This sale is the result of our strategy to focus our international wealth management effort on the ultra high net worth market segment,” said James Gorman, co-President of Morgan Stanley.  

Michael Armstrong, Global Head of Private Wealth Management, added “We believe that there is a significant opportunity to leverage Morgan Stanley’s institutional franchise in these markets and this transaction will enable us to further invest in and grow our international Private Wealth Management business.”   

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 33 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

Note to Editors: 

Morgan Stanley in Spain

Morgan Stanley established its institutional business in Spain in 1987 and in 1993 established a representative office in Madrid which became Morgan Stanley (Spain) S.A. in 1998.  Morgan Stanley offers its Spanish clients a full range of investment banking solutions including financial advisory, equity and debt capital markets, restructurings, primary investment and asset management. From family-owned firms to blue chips, the Firm’s client base includes corporations of all sizes across a variety of industries. Morgan Stanley holds a leadership in both IPOs and M&A in Spain and advises our Spanish corporate clients not only on their domestic transactions but also on their international expansion. 

Morgan Stanley Private Wealth Management

Morgan Stanley Private Wealth Management (“PWM”) was established in 1977 and serves a global client base from offices in the US, Europe, the Middle East and Asia.   The division is dedicated to providing comprehensive wealth management advice to a variety of clients, including individuals, families, trusts and foundations in control of significant pools of assets and liquidity.  Morgan Stanley’s PWM business in Europe & the Middle East currently manages in excess of $30 billion for ultra high net worth clients.

Media Relations Contact:

Hugh Fraser, +44.207.425.3923

Eurocofin, Abigail Diaz-Agero, +34.91.308.3657