Could the headlines get any worse for Morgan Stanley? Already facing an attempt by dissident former managers to unseat its chief executive, on May 16th the investment bank was ordered by a Florida court to pay $604m for defrauding Ronald Perelman, one of America's smartest and richest investors. Mr Perelman contended that Morgan Stanley had misled him in 1998 when he agreed to accept shares in its client, a second-rate appliance manufacturer named Sunbeam, in exchange for his controlling interest in Coleman, a supplier of camping equipment. And yes, things could get worse. On May 18th, after no more than a brief deliberation, the jury decided to award Mr Perelman another $850m, this time in punitive damages.
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