Morgan Stanley (MS) 10-K 26 Feb 10 2009 FY Annual report Financial data

Statement Of Financial Position

Statement Of Financial Position Unclassified - Deposit Based Operations (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Assets
Cash and due from banks	$6,988	$13,354
Interest bearing deposits with banks	25,003	65,316
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements	23,712	24,039
Financial instruments owned, at fair value (approximately $101 billion in 2009 and $73 billion in 2008 were pledged to various parties):
U.S. government and agency securities	62,215	28,012
Other sovereign government obligations	25,445	21,084
Corporate and other debt	90,454	87,294
Corporate equities	57,968	42,321
Derivative and other contracts	49,081	89,418
Investments	9,286	10,385
Physical commodities	5,329	2,126
Total financial instruments owned, at fair value	299,778	280,640
Securities received as collateral, at fair value	13,656	5,231
Federal funds sold and securities purchased under agreements to resell	143,208	122,709
Securities borrowed	167,501	88,052
Receivables:
Customers	27,594	29,265
Brokers, dealers and clearing organizations	5,719	6,250
Other loans	7,259	6,547
Fees, interest and other	11,164	7,258
Other investments	3,752	3,709
Premises, equipment and software costs (net of accumulated depreciation of $3,734 in 2009 and $3,073 in 2008)	7,067	5,095
Goodwill	7,162	2,256
Intangible assets (net of accumulated amortization of $275 in 2009 and $208 in 2008) (includes $137 and $184 at fair value in 2009 and 2008, respectively)	5,054	906
Other assets	16,845	16,137
Total assets	771,462	676,764
Liabilities and Equity
Commercial paper and other short-term borrowings (includes $791 and $1,246 at fair value in 2009 and 2008, respectively)	2,378	10,102
Deposits (includes $4,967 and $9,993 at fair value in 2009 and 2008, respectively)	62,215	51,355
Financial instruments sold, not yet purchased, at fair value:
U.S. government and agency securities	20,503	11,902
Other sovereign government obligations	18,244	9,511
Corporate and other debt	7,826	9,927
Corporate equities	22,601	16,840
Derivative and other contracts	38,209	68,554
Physical commodities	0	33
Total financial instruments sold, not yet purchased, at fair value	107,383	116,767
Obligation to return securities received as collateral, at fair value	13,656	5,231
Securities sold under agreements to repurchase	159,401	92,213
Securities loaned	26,246	14,580
Other secured financings, at fair value	8,102	12,539
Payables:
Customers	117,058	123,617
Brokers, dealers and clearing organizations	5,423	1,585
Interest and dividends	2,597	3,305
Other liabilities and accrued expenses	20,849	16,179
Long-term borrowings (includes $37,610 and $30,766 at fair value in 2009 and 2008, respectively)	193,374	179,835
Liabilities, Total	718,682	627,308
Morgan Stanley shareholders' equity:
Preferred stock	9,597	19,168
Common stock, $0.01 par value; Shares authorized: 3,500,000,000 in 2009 and 2008; Shares issued: 1,487,850,163 in 2009 and 1,211,701,552 in 2008; Shares outstanding: 1,360,595,214 in 2009 and 1,074,497,565 in 2008	15	12
Paid-in capital	8,619	459
Retained earnings	35,056	36,154
Employee stock trust	4,064	4,312
Accumulated other comprehensive loss	(560)	(420)
Common stock held in treasury, at cost, $0.01 par value; 127,254,949 shares in 2009 and 137,203,987 shares in 2008	(6,039)	(6,620)
Common stock issued to employee trust	(4,064)	(4,312)
Total Morgan Stanley shareholders' equity	46,688	48,753
Non-controlling interests	6,092	703
Total equity	52,780	49,456
Total liabilities and equity	$771,462	$676,764

1_Statement Of Financial Positi

Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $)
	Dec. 31, 2009	Dec. 31, 2008
Financial instruments owned, at fair value, pledged to various parties	$101,000,000,000	$73,000,000,000
Premises, equipment and software costs, accumulated depreciation	3,734,000,000	3,073,000,000
Intangible assets, accumulated amortization	275,000,000	208,000,000
Intangible assets, fair value	137,000,000	184,000,000
Commercial paper and other short-term borrowings, fair value	791,000,000	1,246,000,000
Deposits, fair value	4,967,000,000	9,993,000,000
Long-term borrowings, fair value	$37,610,000,000	$30,766,000,000
Common stock, par value	0.01	0.01
Common stock, Shares authorized	3,500,000,000	3,500,000,000
Common stock, Shares issued	1,487,850,163	1,211,701,552
Common stock, Shares outstanding	1,360,595,214	1,074,497,565
Common stock held in treasury, shares	127,254,949	137,203,987

Statement Of Income Interest Ba

Statement Of Income Interest Based Revenue (USD $)
In Millions, except Share data	1 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2009	12 Months Ended Nov. 30, 2008	12 Months Ended Nov. 30, 2007
Revenues:
Investment banking	$196	$5,019	$4,057	$6,316
Principal transactions:
Trading	(1,743)	7,447	5,472	3,208
Investments	(207)	(1,054)	(3,925)	3,247
Commissions	214	4,234	4,449	4,659
Asset management, distribution and administration fees	292	5,884	4,839	5,486
Other	107	838	3,852	776
Total non-interest revenues	(1,141)	22,368	18,744	23,692
Interest and dividends	1,297	7,702	39,679	60,069
Interest expense	1,124	6,712	36,312	57,283
Net interest	173	990	3,367	2,786
Net revenues	(968)	23,358	22,111	26,478
Non-interest expenses:
Compensation and benefits	585	14,438	11,887	16,122
Occupancy and equipment	123	1,551	1,332	1,112
Brokerage, clearing and exchange fees	91	1,190	1,483	1,493
Information processing and communications	95	1,372	1,194	1,155
Marketing and business development	34	503	719	752
Professional services	109	1,603	1,715	2,039
Other	22	1,844	2,644	1,029
Total non-interest expenses	1,059	22,501	20,974	23,702
Income (loss) from continuing operations before income taxes	(2,027)	857	1,137	2,776
(Benefit from) provision for income taxes	(732)	(336)	(21)	576
Income (loss) from continuing operations	(1,295)	1,193	1,158	2,200
Discontinued operations:
Gain from discontinued operations	18	160	1,121	1,682
(Benefit from) provision for income taxes	8	(53)	501	633
Net gain from discontinued operations	10	213	620	1,049
Net income (loss)	(1,285)	1,406	1,778	3,249
Net income applicable to non-controlling interests	3	60	71	40
Net income (loss) applicable to Morgan Stanley	(1,288)	1,346	1,707	3,209
(Loss) earnings applicable to Morgan Stanley common shareholders	(1,624)	(907)	1,495	2,976
Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations	(1,295)	1,149	1,125	2,162
Net gain from discontinued operations	7	197	582	1,047
Net income (loss) applicable to Morgan Stanley	($1,288)	$1,346	$1,707	$3,209
(Loss) earnings per basic common share:
(Loss) income from continuing operations	-1.63	-0.93	0.92	1.98
Net gain from discontinued operations	0.01	0.16	0.53	0.99
(Loss) earnings per basic common share	-1.62	-0.77	1.45	2.97
(Loss) earnings per diluted common share:
Income (loss) from continuing operations	-1.63	-0.93	0.88	1.94
Net gain from discontinued operations	0.01	0.16	0.51	0.96
(Loss) earnings per diluted common share	-1.62	-0.77	1.39	2.9
Average common shares outstanding:
Basic	1,002,058,928	1,185,414,871	1,028,180,275	1,001,878,651
Diluted	1,002,058,928	1,185,414,871	1,073,496,349	1,024,836,645

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Millions	1 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2009		12 Months Ended Nov. 30, 2008		12 Months Ended Nov. 30, 2007
Net income (loss)	($1,285)		$1,406		$1,778		$3,249
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(96)	[5]	112	[5]	(270)	[5]	187	[5]
Net change in cash flow hedges	2	[7]	13	[7]	16	[7]	19	[7]
Minimum pension liability adjustment	0	[6]	0	[6]	0	[6]	(40)	[6]
Net (loss) gain related to pension and postretirement adjustments	(200)	[1]	(305)	[1]	203	[1]	0	[1]
Prior service credit related to pension and postretirement adjustments	0	[4]	10	[4]	0	[4]	0	[4]
Amortization of net loss related to pension and postretirement benefits	0	[3]	28	[3]	19	[3]	0	[3]
Amortization of prior service credit related to pension and postretirement benefits	(1)	[2]	(6)	[2]	(6)	[2]	0	[2]
Comprehensive income (loss)	(1,580)		1,258		1,740		3,415
Net income applicable to non-controlling interests	3		60		71		40
Other comprehensive (loss) income applicable to non-controlling interests	0		(8)		(110)		122
Comprehensive income (loss) applicable to Morgan Stanley	($1,583)		$1,206		$1,779		$3,253
[1]Amount is net of (benefit from) provision for income taxes of $(179) million, $138 million and $(132) million for 2009, fiscal 2008 and the one month ended December 31, 2008, respectively.
[2]Amount is net of income tax benefits of $(4) million for 2009 and fiscal 2008, respectively.
[3]Amount is net of provision for income taxes of $16 million and $13 million for 2009 and fiscal 2008, respectively.
[4]Amount is net of provision for income taxes of $6 million.
[5]Amounts are net of (benefit from) provision for income taxes of $(335) million, $388 million, $(132) million and $(52) million for 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively.
[6]Amounts are net of income tax benefits of $(16) million for fiscal 2007.
[7]Amounts are net of provision for income taxes of $8 million, $11 million, $10 million and $1 million for 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively.

2_Statement Of Other Comprehens

Statement Of Other Comprehensive Income (Parenthetical) (USD $)
In Millions	1 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2009	12 Months Ended Nov. 30, 2008	12 Months Ended Nov. 30, 2007
Foreign currency translation adjustments, (benefit from) provision for income taxes	($52)	($335)	$388	($132)
Net change in cash flow hedges, provision for income taxes	1	8	11	10
Minimum pension liability adjustment, income tax benefits	0	0	0	(16)
Net (loss) gain related to pension and other postretirement adjustments, (benefit from) provision for income taxes	(132)	(179)	138	0
Prior service credit related to pension and postretirement adjustments, provision for income taxes	0	6	0	0
Amortization of net loss related to pension and postretirement benefits, provision for income taxes	0	16	13	0
Amortization of prior service credit related to pension and postretirement benefits, income tax benefits	$0	($4)	($4)	$0

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Deposit Based Operations (USD $)
In Millions	1 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2009	12 Months Ended Nov. 30, 2008	12 Months Ended Nov. 30, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	($1,285)	$1,406	$1,778	$3,249
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
Deferred income taxes	(781)	(932)	(1,224)	(1,669)
Compensation payable in common stock and options	77	1,265	1,838	1,927
Depreciation and amortization	104	1,224	794	475
Provision for consumer loan losses	0	0	0	478
Gains on business dispositions	0	(606)	(2,232)	(168)
Gain on repurchase of long-term debt	(73)	(491)	(2,252)	0
Insurance settlement	0	0	0	(38)
Impairment charges and other-than-temporary impairment charges	0	823	1,238	437
Changes in assets and liabilities:
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements	1,407	211	5,001	(9,334)
Financial instruments owned, net of financial instruments sold, not yet purchased	2,412	(26,130)	78,486	(25,361)
Securities borrowed	(2,267)	(79,449)	154,209	59,637
Securities loaned	(241)	11,666	(95,602)	(39,834)
Receivables and other assets	1,479	(2,445)	54,531	(3,973)
Payables and other liabilities	11,481	818	(114,531)	71,092
Federal funds sold and securities purchased under agreements to resell	(16,290)	(20,499)	51,822	26,194
Securities sold under agreements to repurchase	(10,188)	67,188	(60,439)	(105,361)
Net cash (used for) provided by operating activities	(14,165)	(45,951)	73,417	(22,249)
Net (payments for) proceeds from:
Premises, equipment and software costs	(107)	(2,877)	(1,400)	(1,469)
Business acquisitions, net of cash acquired	0	(2,160)	(174)	(1,169)
Business dispositions, net of cash disposed	0	565	743	476
Net principal disbursed on consumer loans	0	0	0	(4,776)
Sales of consumer loans	0	0	0	5,301
Purchases of securities available for sale	0	0	0	(14,073)
Sales of securities available for sale	0	0	0	4,272
Net cash provided by (used for) investing activities	(107)	(4,472)	(831)	(11,438)
Net (payments for) proceeds from:
Short-term borrowings	(381)	(7,724)	(24,012)	8,274
Derivatives financing activities	(3,354)	(85)	962	(859)
Other secured financings	12	(4,437)	(15,246)	(24,231)
Deposits	8,600	10,860	11,576	23,099
Excess tax benefits associated with stock-based awards	0	102	47	281
Net proceeds from:
Non-controlling interests	0	0	1,560	265
Morgan Stanley public offerings of common stock	0	6,212	0	0
Issuance of preferred stock and common stock warrant	0	0	18,997	0
Issuance of common stock	4	43	397	927
Issuance of long-term borrowings	13,590	43,960	42,331	74,540
Issuance of junior subordinated debentures related to China Investment Corporation	0	0	5,579	0
Payments for:
Long-term borrowings	(5,694)	(33,175)	(56,120)	(33,120)
Series D Preferred stock and warrant	0	(10,950)	0	0
Redemption of capital units	0	0	0	(66)
Repurchases of common stock through capital management share repurchase program	0	0	(711)	(3,753)
Repurchases of common stock for employee tax withholding	(3)	(50)	(1,117)	(438)
Cash distribution in connection with the Discover Spin-off	0	0	0	(5,615)
Cash dividends	0	(1,732)	(1,227)	(1,219)
Net cash (used for) provided by financing activities	12,774	3,024	(16,984)	38,085
Effect of exchange rate changes on cash and cash equivalents	1,514	720	(2,546)	594
Net (decrease) increase in cash and cash equivalents	16	(46,679)	53,056	4,992
Cash and cash equivalents, at beginning of period	78,654		25,598	20,606
Cash and cash equivalents, at end of period	78,670	31,991	78,654	25,598
Cash and cash equivalents include:
Cash and due from banks	13,354	6,988	11,276	7,248
Interest bearing deposits with banks	65,316	25,003	67,378	18,350
Cash and cash equivalents, at end of period	$78,670	$31,991	$78,654	$25,598

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Preferred Stock	Common Stock	Paid-in Capital	Retained Earnings	Employee Stock Trust	Accumulated Other Comprehensive Income (Loss)	Common Stock Held in Treasury at Cost	Common Stock Issued to Employee Trust	Non- controlling Interests	Total
BEGINNING BALANCE at Nov. 30, 2006	$1,100	$12	$2,213	$41,422	$4,315	($35)	($9,348)	($4,315)	$2,620	$37,984
Fair value adjustment				186						186
Net (loss) income				3,209					40	3,249
Dividends				(1,219)					(57)	(1,276)
Shares issued under employee plans and related tax effects			420	5	1,254		2,857	(1,254)		3,282
Repurchases of common stock							(4,070)			(4,070)
Net change in cash flow hedges						19				19	[3]
Minimum pension liability adjustment						(40)				(40)	[2]
Pension adjustment						(208)				(208)
Foreign currency translation adjustments						65			122	187	[1]
MSCI Inc. initial public offering			239							239
Discover Spin-off			(970)	(5,558)			970			(5,558)
Issuances of shares by subsidiaries									219	219
Acquisitions of subsidiaries									741	741
Repurchases of subsidiaries' shares by Morgan Stanley									(2,044)	(2,044)
Decrease in non-controlling interests related to disposition of a subsidiary									(10)	(10)
Other									(3)	(3)
ENDING BALANCE at Nov. 30, 2007	1,100	12	1,902	38,045	5,569	(199)	(9,591)	(5,569)	1,628	32,897
Net (loss) income				1,707					71	1,778
Dividends				(1,227)					(71)	(1,298)
Shares issued under employee plans and related tax effects			(1,142)		(1,668)		3,493	1,668		2,351
Repurchases of common stock							(1,828)			(1,828)
Issuance of preferred stock and common stock warrant	18,055		957	(15)						18,997
Net change in cash flow hedges						16				16	[3]
Pension adjustment				(15)		2				(13)
Pension and postretirement adjustments						216				216
Tax adjustment				(92)						(92)
Foreign currency translation adjustments						(160)			(110)	(270)	[1]
Equity Units			(405)							(405)
Reclassification of negative additional paid-in capital to retained earnings			307	(307)						0
Sales of subsidiaries' shares by Morgan Stanley									132	132
Acquisitions of subsidiaries									9	9
Repurchases of subsidiaries' shares by Morgan Stanley									(445)	(445)
Decrease in non-controlling interests related to disposition of a subsidiary									(514)	(514)
Other									5	5
ENDING BALANCE at Nov. 30, 2008	19,155	12	1,619	38,096	3,901	(125)	(7,926)	(3,901)	705	51,536
Net (loss) income				(1,288)					3	(1,285)
Dividends				(641)					(5)	(646)
Shares issued under employee plans and related tax effects			(1,160)		411		1,309	(411)		149
Repurchases of common stock							(3)			(3)
Preferred stock accretion	13			(13)						0
Net change in cash flow hedges						2				2	[3]
Pension and postretirement adjustments						(201)				(201)
Foreign currency translation adjustments						(96)				(96)	[1]
ENDING BALANCE at Dec. 31, 2008	19,168	12	459	36,154	4,312	(420)	(6,620)	(4,312)	703	49,456
Net (loss) income				1,346					60	1,406
Dividends				(1,310)					(23)	(1,333)
Shares issued under employee plans and related tax effects			485		(248)		631	248		1,116
Repurchases of common stock							(50)			(50)
Morgan Stanley public offerings of common stock		3	6,209							6,212
Series C Preferred Stock extinguished and exchanged for common stock	(503)		705	(202)						0
Series D Preferred Stock and Warrant	(9,068)		(950)	(932)						(10,950)
Gain on Morgan Stanley Smith Barney transaction			1,711							1,711
Net change in cash flow hedges						13				13	[3]
Pension and postretirement adjustments						(269)			(4)	(273)
Foreign currency translation adjustments						116			(4)	112	[1]
Increase in non-controlling interests related to Morgan Stanley Smith Barney transaction									4,825	4,825
Increase in non-controlling interests related to the consolidation of certain real estate funds sponsored by the Company									724	724
Decrease in non-controlling interests related to disposition of a subsidiary									(229)	(229)
Other increases in non-controlling interests									40	40
ENDING BALANCE at Dec. 31, 2009	$9,597	$15	$8,619	$35,056	$4,064	($560)	($6,039)	($4,064)	$6,092	$52,780
[1]Amounts are net of (benefit from) provision for income taxes of $(335) million, $388 million, $(132) million and $(52) million for 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively.
[2]Amounts are net of income tax benefits of $(16) million for fiscal 2007.
[3]Amounts are net of provision for income taxes of $8 million, $11 million, $10 million and $1 million for 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively.

Introduction and Basis of Prese

Introduction and Basis of Presentation
	12 Months Ended Dec. 31, 2009 USD / shares
Introduction and Basis of Presentation	1.Introduction and Basis of Presentation The Company.Morgan Stanley (or the Company), a financial holding company, is a global financial services firm that maintains significant market positions in each of its business segmentsInstitutional Securities, Global Wealth Management Group and Asset Management. A summary of the activities of each of the Companys business segments is as follows: Institutional Securities includes capital raising; financial advisory services, including advice on mergers and acquisitions, restructurings, real estate and project finance; corporate lending; sales, trading, financing and market-making activities in equity and fixed income securities and related products, including foreign exchange and commodities; and investment activities. Global Wealth Management Group, which includes the Companys 51% interest in Morgan Stanley Smith Barney Holdings LLC (MSSB) (see Note 3), provides brokerage and investment advisory services to individual investors and small-to-medium sized businesses and institutions covering various investment alternatives; financial and wealth planning services; annuity and other insurance products; credit and other lending products; cash management services; retirement services; and trust and fiduciary services. Asset Management provides global asset management products and services in equity, fixed income, alternative investments, which includes hedge funds and funds of funds, and merchant banking, which includes real estate, private equity and infrastructure, to institutional and retail clients through proprietary and third-party distribution channels. Asset Management also engages in investment activities. Change in Fiscal Year-End. On December16, 2008, the Board of Directors of the Company approved a change in the Companys fiscal year- end from November30 to December31 of each year. This change to the calendar year reporting cycle began January1, 2009. As a result of the change, the Company had a one-month transition period in December 2008. Included in this report is the Companys consolidated statements of financial condition as of December31, 2009 and December31, 2008; the consolidated statements of income, comprehensive income, cash flows and changes in total equity for the 12 months ended December31, 2009 (2009),November30, 2008 (fiscal 2008) and November30, 2007 (fiscal 2007) and the one month ended December31, 2008. Discontinued Operations. Retail Asset Management Business.On October19, 2009, as part of a restructuring of its Asset Management business segment, the Company entered into a definitive agreement to sell substantially all of its retail asset management business (Retail Asset Management), including Van Kampen Investments, Inc., (Van Kampen), to Invesco Ltd. (Invesco). This transaction allows the Companys Asset Management business segment to focus on its institutional client base, including corporations, pension plans, large intermediaries, foundations and endowments, sovereign wealth funds and central banks, among others. Under the terms of the definitive agreement, Invesco will purchase substantially all of Retail Asset Management, operating

Summary of Significant Accounti

Summary of Significant Accounting Policies.
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies.	2.Summary of Significant Accounting Policies. Revenue Recognition. Investment Banking.Underwriting revenues and advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are determined to be substantially completed, generally as set forth under the terms of the engagement. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenues are presented net of related expenses. Non-reimbursed expenses associated with advisory transactions are recorded within Non-interest expenses. Commissions.The Company generates commissions from executing and clearing customer transactions on stock, options and futures markets. Commission revenues are recognized in the accounts on trade date. Asset Management, Distribution and Administration Fees.Asset management, distribution and administration fees are recognized over the relevant contract period. Sales commissions paid by the Company in connection with the sale of certain classes of shares of its open-end mutual fund products are accounted for as deferred commission assets. The Company periodically tests the deferred commission assets for recoverability based on cash flows expected to be received in future periods. In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenue is accrued (or reversed) quarterly based on measuring account/fund performance to date versus the performance benchmark stated in the investment management agreement. Performance-based fees are recorded within Principal transactionsinvestment revenues or Asset management, distribution and administration fees depending on the nature of the arrangement. Principal Transactions.See Financial Instruments and Fair Value below for principal transactions revenue recognition discussions. Financial Instruments and Fair Value. A significant portion of the Companys financial instruments is carried at fair value with changes in fair value recognized in earnings each period. A description of the Companys policies regarding fair value measurement and its application to these financial instruments follows. Financial Instruments Measured at Fair Value.All of the instruments within Financial instruments owned and Financial instruments sold, not yet purchased, are measured at fair value, either through the fair value option election (discussed below) or as required by other accounting pronouncements.These financial instruments primarily represent the Companys trading and investment activities and include both cash and derivative products. In addition, Securities received as collateral and Obligation to return securities received as collateral are measured at fair value as required by other accounting pronouncements. Additionally, certain Commercial paper and other

Morgan Stanley Smith Barney Hol

Morgan Stanley Smith Barney Holdings LLC.
	12 Months Ended Dec. 31, 2009 USD / shares
Morgan Stanley Smith Barney Holdings LLC.	3.Morgan Stanley Smith Barney Holdings LLC. Smith Barney.On May31, 2009 (the Closing Date), the Company and Citi consummated the combination of the Companys Global Wealth Management Group and the businesses of Citis Smith Barney in the U.S., Quilter in the U.K., and Smith Barney Australia (Smith Barney). In addition to the Companys contribution of respective businesses to MSSB, the Company paid Citi $2,755million in cash. The combined businesses operate as MSSB. Pursuant to the terms of the amended contribution agreement, dated as of May29, 2009 (amended contribution agreement), certain businesses of Smith Barney and Morgan Stanley will be contributed to MSSB subsequent to May31, 2009 (the delayed contribution businesses). Morgan Stanley and Citi will each own their delayed contribution businesses until they are transferred to MSSB and gains and losses from such businesses will be allocated to the Companys and Citis respective share of MSSBs gains and losses. The Company owns 51% and Citi owns 49% of MSSB, with the Company having appointed four directors to the MSSB board and Citi having appointed two directors. As part of the acquisition, the Company has the option (i)following the third anniversary of the Closing Date to purchase a portion of Citis interest in MSSB representing 14% of the total outstanding MSSB interests, (ii)following the fourth anniversary of the Closing Date to purchase a portion of Citis interest in MSSB representing an additional 15% of the total outstanding MSSB interests and (iii)following the fifth anniversary of the Closing Date to purchase the remainder of Citis interest in MSSB. The Company may call all of Citis interest in MSSB upon a change in control of Citi. Citi may put all of its interest in MSSB to the Company upon a change in control of the Company or following the later of the sixth anniversary of the Closing Date and the one-year anniversary of the Companys exercise of the call described in clause (ii)above. The purchase price for the call and put rights described above is the fair market value of the purchased interests determined pursuant to an appraisal process. As of May31, 2009, the Company included MSSB in its consolidated financial statements. The results of MSSB are included within the Global Wealth Management Group business segment. See Note 13 for further information on MSSB. The Company accounted for the transaction using the acquisition method of accounting. The fair value of the total consideration transferred to Citi amounted to approximately $6,087 million and the preliminary fair value of Citis equity in MSSB was approximately $3,973 million. The acquisition method of accounting prescribes the full goodwill method even in business combinations in which the acquirer holds less than 100% of the equity interests in the acquiree at acquisition date. Accordingly, the full fair value of Smith Barney was allocated to the fair value of assets acquired and liabilities assumed to derive the preliminary goodwill amount of approximately $5,210million, which represents synergies of combining the two businesses. The Company is still finalizing the valuation of the intangible assets and t

Fair Value Disclosures.

Fair Value Disclosures.
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Disclosures.	4.Fair Value Disclosures. Fair Value Measurements. A description of the valuation techniques applied to the Companys major categories of assets and liabilities measured at fair value on a recurring basis follows. Financial Instruments Owned and Financial Instruments Sold, Not Yet Purchased U.S. Government and Agency Securities U.S. Treasury Securities.U.S. treasury securities are valued using quoted market prices. Valuation adjustments are not applied. Accordingly, U.S. treasury securities are generally categorized in Level1 of the fair value hierarchy. U.S. Agency Securities.U.S. agency securities are comprised of two main categories consisting of agency issued debt and mortgage pass-throughs. Non-callable agency issued debt securities are generally valued using quoted market prices. Callable agency issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for identical or comparable securities. Mortgage pass-throughs include mortgage pass-throughs and forward settling mortgage pools. Fair value ofmortgage pass-throughs are model driven with respect to spreads of the comparable To-be-announced (TBA) security. Actively traded non-callable agency issued debt securities are categorized in Level 1 of the fair value hierarchy. Callable agency issued debt securities and mortgage pass-throughs are generally categorized in Level 2 of the fair value hierarchy. Other Sovereign Government Obligations Foreign sovereign government obligations are valued using quoted prices in active markets when available. To the extent quoted prices are not available, fair value is determined based on a valuation model that has as inputs interest rate yield curves, cross-currency basis index spreads, and country credit spreads for structures similar to the bond in terms of issuer, maturity and seniority. These bonds are generally categorized in Levels 1 or 2 of the fair value hierarchy. Corporate and Other Debt State and Municipal Securities.The fair value of state and municipal securities is estimated using recently executed transactions, market price quotations and pricing models that factor in, where applicable, interest rates, bond or credit default swap spreads and volatility. These bonds are generally categorized in Level 2 of the fair value hierarchy. Residential Mortgage-Backed Securities (RMBS), Commercial Mortgage-Backed Securities (CMBS), and other Asset-Backed Securities (ABS).RMBS, CMBS and other ABS may be valued based on external price or spread data. When position-specific external price data are not observable, the valuation is based on prices of comparable bonds. Valuation levels of RMBS and CMBS indices are used as an additional data point for benchmarking purposes or to price outright index positions. Fair value for retainedinterests in securitized financial assets(in the form of one or more tranches of the securitization) is determined usingobservable pricesor,in cases where observablepricesare notavailable for certain retained interests,the Company estimates fair value based on the present value of expected futu

Collateralized Transactions.

Collateralized Transactions.
	12 Months Ended Dec. 31, 2009 USD / shares
Collateralized Transactions.	5.Collateralized Transactions. Securities purchased under agreements to resell (reverse repurchase agreements) and Securities sold under agreements to repurchase (repurchase agreements), principally government and agency securities, are carried at the amounts at which the securities subsequently will be resold or reacquired as specified in the respective agreements; such amounts include accrued interest. Reverse repurchase agreements and repurchase agreements are presented on a net-by-counterparty basis, when appropriate. The Companys policy is generally to take possession of securities purchased under agreements to resell. Securities borrowed and Securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions. Other secured financings include the liabilities related to transfers of financial assets that are accounted for as financings rather than sales, consolidated VIEs where the Company is deemed to be the primary beneficiary, and certain equity-referenced securities and loans where in all instances these liabilities are payable solely from the cash flows of the related assets accounted for as Financial instruments owned (see Note 6). The Company pledges its financial instruments owned to collateralize repurchase agreements and other securities financings. Pledged financial instruments that can be sold or repledged by the secured party are identified as Financial instruments owned (pledged to various parties) in the consolidated statements of financial condition. The carrying value and classification of financial instruments owned by the Company that have been loaned or pledged to counterparties where those counterparties do not have the right to sell or repledge the collateral were as follows: At December31, 2009 At December31, 2008 (dollars in millions) Financial instruments owned: U.S. government and agency securities $ 18,376 $ 9,134 Other sovereign government obligations 4,584 2,570 Corporate and other debt 13,111 21,850 Corporate equities 10,284 4,388 Total $ 46,355 $ 37,942 The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers needs and to finance the Companys inventory positions. The Company also engages in securities financing transactions for customers through margin lending. Under these agreements and transactions, the Company either receives or provides collateral, including U.S. government and agency securities, other sovereign government obligations, corporate and other debt, and corporate equities. The Company receives collateral in the form of securities in connection with reverse repurchase agreements, securities borrowed and derivative transactions, and customer margin loans. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreement

Securitization Activities and V

Securitization Activities and Variable Interest Entities.
	12 Months Ended Dec. 31, 2009 USD / shares
Securitization Activities and Variable Interest Entities.	6.Securitization Activities and Variable Interest Entities. Securitization Activities and Qualifying Special Purpose Entities. Securitization Activities.In a securitization transaction, the Company transfers assets (generally commercial or residential mortgage loans or U.S. agency securities) to a special purpose entity (an SPE), sells to investors most of the beneficial interests, such as notes or certificates, issued by the SPE and in many cases retains other beneficial interests. In many securitization transactions involving commercial mortgage loans, the Company transfers a portion of the assets to the SPE with unrelated parties transferring the remaining assets. The purchase of the transferred assets by the SPE is financed through the sale of these interests. In some of these transactions, primarily involving residential mortgage loans in the U.S. and Europe and commercial mortgage loans in Europe, the Company acts as servicer for some or all of the transferred loans. In many securitizations, particularly involving residential mortgage loans, the Company also enters into derivative transactions, primarily interest rate swaps or interest rate caps, with the SPE. In most of these transactions, the SPE met the criteria to be a QSPE under the accounting guidance effective prior to January1, 2010 for the transfer and servicing of financial assets. The Company did not consolidate QSPEs if they met certain criteria regarding the types of assets and derivatives they may hold, the activities in which they may engage and the range of discretion they may exercise in connection with the assets they hold. The determination of whether an SPE met the criteria to be a QSPE required considerable judgment, particularly in evaluating whether the permitted activities of the SPE were significantly limited and in determining whether derivatives held by the SPE were passive and not excessive. The primary risk retained by the Company in connection with these transactions generally was limited to the beneficial interests issued by the SPE that were owned by the Company, with the risk highest on the most subordinate class of beneficial interests. Where the QSPE criteria were met, these beneficial interests generally were included in Financial instruments ownedcorporate and other debt and were measured at fair value. The Company did not provide additional support in these transactions through contractual facilities, such as liquidity facilities, guarantees, or similar derivatives. Although not obligated, the Company generally makes a market in the securities issued by SPEs in these transactions. As a market maker, the Company offers to buy these securities from, and sell these securities to, investors. Securities purchased through these market-making activities are not considered to be retained interests, although these beneficial interests generally are included in Financial instruments ownedcorporate and other debt and are measured at fair value. The Company enters into derivatives, generally interest rate swaps and interest rate caps with a senior payment priority in many securitization transactions. The risks associated with these and si

Goodwill and Net Intangible Ass

Goodwill and Net Intangible Assets.
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Net Intangible Assets.	7.Goodwill and Net Intangible Assets. Goodwill and net intangible assets increased during 2009 primarily due to the acquisition of Smith Barney and Citi Managed Futures (see Note 3). The Company tests goodwill for impairment on an annual basis and on an interim basis when certain events or circumstances exist. The Company tests for impairment at the reporting unit level, which is generally one level below its business segments. Goodwill impairment is determined by comparing the estimated fair value of a reporting unit with its respective book value. If the estimated fair value exceeds the book value, goodwill at the reporting unit level is not deemed to be impaired. If the estimated fair value is below book value, however, further analysis is required to determine the amount of the impairment. The estimated fair values of the reporting units are generally determined utilizing methodologies that incorporate price-to-book, price-to-earnings and assets under management multiples of certain comparable companies. The Company completed its annual goodwill impairment testing as of June1, 2009 and June1, 2008, which did not result in any goodwill impairment. During the quarter ended September30, 2009, the Company changed the date of its annual goodwill impairment testing to July1 as a result of the Companys change in its fiscal year-end from November30 to December31 of each year. The change to the annual goodwill impairment testing date was to move the impairment testing outside of the Companys normal second quarter-end reporting process to a date in the third quarter, consistent with the testing date prior to the change in the fiscal year-end. The Company believes that the resulting change in accounting principle related to the annual testing date will not delay, accelerate, or avoid an impairment charge. Goodwill impairment tests performed as of July1, 2009 concluded that no impairment charges were required as of that date. The Company determined that the change in accounting principle related to the annual testing date is preferable under the circumstances and did not result in adjustments to the Companys consolidated financial statements when applied retrospectively. Due to the financial market and economic events that occurred in the fourth quarter of fiscal 2008, the Company performed an interim impairment test for goodwill subsequent to its annual testing date of June1, 2008. The interim impairment test resulted in a noncash goodwill impairment charge of approximately $673 million. The charge related to the fixed income business, which is a reporting unit within the Institutional Securities business segment. The fair value of the fixed income business was calculated by comparison with similar companies using their publicly traded price-to-book multiples as the basis for valuation. The impairment charge resulted from declines in the credit and mortgage markets in general, which caused significant declines in the stock market capitalization in the fourth quarter of fiscal 2008 and, hence, a decline in the fair value of the fixed income business. Due to the continued deterioration in the financial markets, the Company performe

Deposits.

Deposits.
	12 Months Ended Dec. 31, 2009 USD / shares
Deposits.	8.Deposits. Deposits were as follows: At December31, 2009(1) At December31, 2008(1) (dollars in millions) Savings and demand deposits $ 57,114 $ 41,226 Time deposits(2) 5,101 10,129 Total $ 62,215 $ 51,355 (1) Total deposits insured by the FDIC at December 31, 2009 and December 31, 2008 were $46 billion and $47 billion, respectively. (2) Certain time deposit accounts are carried at fair value under the fair value option (see Note 4). The weighted average interest rates of interest bearing deposits outstanding during 2009, fiscal 2008, fiscal 2007 and the one month ended December31, 2008 were 1.3%, 2.1%, 4.0% and 1.3%, respectively. As of December31, 2009, interest bearing deposits maturing over the next five years were as follows (dollars in millions): Year 2010(1) $ 59,097 2011 898 2012 586 2013 1,331 2014 192 (1) Amount includes approximately $57 billion of savings deposits, which have no stated maturity and approximately $2 billion of time deposits. As of December31, 2009 and December31, 2008, the Company had $110 million and $64 million, respectively, of time deposits in denominations of $100,000 or more.

Borrowings.

Borrowings.
	12 Months Ended Dec. 31, 2009 USD / shares
Borrowings.	9.Borrowings. Commercial Paper and Other Short-Term Borrowings. The table below summarizes certain information regarding commercial paper and other short-term borrowings: December31, 2009(1) December31, 2008(2) (dollars in millions) Commercial Paper(3): Balance at period-end $ 783 $ 7,388 Average balance $ 924 $ 7,066 Weighted average interest rate on period-end balance 0.8 % 2.3 % Other Short-Term Borrowings(4)(5): Balance at period-end $ 1,595 $ 2,714 Average balance $ 2,453 $ 3,529 (1) Average balances are calculated based upon weekly balances for 2009. (2) Average balances are calculated based upon month-end balances for the one month ended December 31, 2008. (3) Amounts at December 31, 2008 include commercial paper issued under the Temporary Liquidity Guarantee Program (TLGP). (4) These borrowings included bank loans, bank notes and structured notes with maturities of 12 months or less. (5) Certain structured short-term borrowings are carried at fair value under the fair value option. See Note 4 for additional information. Long-Term Borrowings. Maturities and Terms.Long-term borrowings consisted of the following (dollars in millions): U.S. Dollar Non-U.S. Dollar(1) Fixed Rate Floating Rate(2) Index Linked(3) Fixed Rate Floating Rate(2) Index Linked(3) At December31, 2009(4)(5)(6) At December31, 2008(4) Due in 2009 $ $ $ $ $ $ $ $ 20,580 Due in 2010 11,484 6,932 1,557 2,452 1,481 2,182 26,088 25,129 Due in 2011 11,054 4,422 1,910 4,928 788 3,708 26,810 24,915 Due in 2012 10,891 10,201 723 5,214 7,196 3,814 38,039 24,199 Due in 2013 2,820 19 539 3,837 7,684 10,121 25,020 21,665 Due in 2014 8,295 1,617 745 2,656 2,414 1,139 16,866 9,753 Thereafter 29,875 6,007 3,299 11,674 6,219 3,477 60,551 53,594 Total $ 74,419 $ 29,198 $ 8,773 $ 30,761 $ 25,782 $ 24,441 $ 193,374 $ 179,835 Weighted average coupon at period-end 5.2 % 1.2 % n/a 4.6 % 1.1 % n/a 3.7 % 4.8 % (1) Weighted average coupon was calculated utilizing non-U.S. dollar interest rates. (2) U.S. dollar contractual floating rate borrowings bear interest based on a variety of money market indices, including London Interbank Offered Rates (LIBOR) and Federal Funds rates. Non-U.S. dollar contractual floating rate borrowings bear interest based primarily on Euribor floating rates. (3) Amounts include borrowings that are equity linked, credit linked, commo

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities.
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Instruments and Hedging Activities.	10.Derivative Instruments and Hedging Activities. The Company trades, makes markets and takes proprietary positions globally in listed futures, OTC swaps, forwards, options and other derivatives referencing, among other things, interest rates, currencies, investment grade and non-investment grade corporate credits, loans, bonds, U.S. and other sovereign securities, emerging market bonds and loans, credit indices, asset-backed security indices, property indices, mortgage-related and other asset-backed securities and real estate loan products. The Company uses these instruments for trading, foreign currency exposure management, and asset and liability management. The Company manages its trading positions by employing a variety of risk mitigation strategies. These strategies include diversification of risk exposures and hedging. Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e.g., futures, forwards, swaps and options). The Company manages the market risk associated with its trading activities on a Company-wide basis, on a worldwide trading division level and on an individual product basis. The Company incurs credit risk as a dealer in OTC derivatives. Credit risk with respect to derivative instruments arises from the failure of a counterparty to perform according to the terms of the contract. The Companys exposure to credit risk at any point in time is represented by the fair value of the derivative contracts reported as assets. The fair value of a derivative represents the amount at which the derivative could be exchanged in an orderly transaction between market participants, and is further described in Notes2 and 4. In connection with its derivative activities, the Company generally enters into master netting agreements and collateral arrangements with counterparties. These agreements provide the Company with the ability to offset a counterpartys rights and obligations, request additional collateral when necessary or liquidate the collateral in the event of counterparty default. The tables below present a summary by counterparty credit rating and remaining contract maturity of the fair value of OTC derivatives in a gain position as of December31, 2009 and December31, 2008, respectively. Fair value is presented in the final column net of collateral received (principally cash and U.S. government and agency securities): OTC Derivative ProductsFinancial Instruments Owned at December31, 2009(1) Years to Maturity Cross-Maturity andCash Collateral Netting(3) NetExposure Post-Cash Collateral NetExposure Post- Collateral Credit Rating(2) Lessthan1 1-3 3-5 Over 5 (dollars in millions) AAA $ 852 $ 2,026 $ 3,876 $ 9,331 $ (6,616 ) $ 9,469 $ 9,082 AA 6,469 7,855 6,600 15,071 (25,576 ) 10,419 8,614 A 8,018 10,712 7,990 22,739 (38,971 ) 10,488 9,252 BBB 3,032 4,193 2,947 7,524 (8,971 ) 8,725 5,902 Non-investment grade 2,773

Commitments, Guarantees and Con

Commitments, Guarantees and Contingencies.
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments, Guarantees and Contingencies.	11.Commitments, Guarantees and Contingencies. Commitments. The Companys commitments associated with outstanding letters of credit and other financial guarantees obtained to satisfy collateral requirements, investment activities, corporate lending and financing arrangements, mortgage lending and margin lending as of December31, 2009 are summarized below by period of expiration. Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements: Years to Maturity Total at December31, 2009 Less than 1 1-3 3-5 Over5 (dollars in millions) Letters of credit and other financial guarantees obtained to satisfy collateral requirements $ 1,043 $ 1 $ 1 $ 52 $ 1,097 Investment activities 1,013 883 199 83 2,178 Primary lending commitmentsInvestment grade(1)(2) 10,146 26,378 4,033 154 40,711 Primary lending commitmentsNon-investment grade(1) 344 4,193 2,515 124 7,176 Secondary lending commitments(1) 18 107 121 97 343 Commitments for secured lending transactions 683 1,415 114 2,212 Forward starting reverse repurchase agreements(3) 30,104 101 30,205 Commercial and residential mortgage-related commitments(1) 1,485 1,485 Other commitments(4) 289 1 150 440 Total $ 45,125 $ 33,079 $ 7,133 $ 510 $ 85,847 (1) These commitments are recorded at fair value within Financial instruments owned and Financial instruments sold, not yet purchased in the consolidated statements of financial condition (see Note 4 to the consolidated financial statements). (2) This amount includes commitments to asset-backed commercial paper conduits of $276 million as of December31, 2009, of which $268million have maturities of less than one year and $8 million of which have maturities of one to three years. (3) The Company enters into forward starting securities purchased under agreements to resell (agreements that have a trade date as of or prior to December31, 2009 and settle subsequent to period-end.) These agreements primarily settle within three business days and as of December31, 2009, $26.6billion of the $30.2 billion settled within three business days. (4) Amount includes a $200 million lending facility to a real estate fund sponsored by the Company. Letters of Credit and Other Financial Guarantees Obtained to Satisfy Collateral Requirements.The Company has outstanding letters of credit and other financial guarantees issued by third-party banks to certain of the Companys counterparties. The Company is contingently liable for these letters of credit and other financial guarantees, which are primarily used to provide collateral for securities and commodities borrowed and to satisfy various margin requirements in lieu of depositing cash or securities with these counterparties. Investment Activities.The Company en

Regulatory Requirements.

Regulatory Requirements.
	12 Months Ended Dec. 31, 2009 USD / shares
Regulatory Requirements.	12.Regulatory Requirements. Morgan Stanley.In September 2008, the Company became a financial holding company under the Bank Holding Company Act subject to the regulation and oversight of the Board of Governors of the Federal Reserve System (the Fed). The Fed establishes capital requirements for the Company, including well-capitalized standards, and evaluates the Companys compliance with such capital requirements. The Office of the Comptroller of the Currency and the Office of Thrift Supervision establish similar capital requirements and standards for the Companys national banks and federal savings bank, respectively. The Company calculates its capital ratios and risk-weighted assets (RWAs) in accordance with the capital adequacy standards for financial holding companies adopted by the Fed. These standards are based upon a framework described in the International Convergence of Capital Measurement and Capital Standards, July 1988, as amended, also referred to as Basel I. In December 2007, the U.S. banking regulators published a final Basel II Accord that requires internationally active banking organizations, as well as certain of its U.S. bank subsidiaries, to implement BaselII standards over the next several years. The Company will be required to implement these Basel II standards as a result of becoming a financial holding company. As of December31, 2009, the Company was in compliance with Basel I capital requirements with ratios of Tier 1 capital to RWAs of 15.3% and total capital to RWAs of 16.4% (6% and 10% being well-capitalized for regulatory purposes, respectively). In addition, financial holding companies are also subject to a Tier 1 leverage ratio as defined by the Fed. The Company calculated its Tier 1 leverage ratio as Tier 1 capital divided by adjusted average total assets (which reflects adjustments for disallowed goodwill, certain intangible assets and deferred tax assets). The adjusted average total assets are derived using weekly balances for the calendar quarter. This ratio as of December31, 2009 was 5.8%. The following table summarizes the capital measures for the Company at December31, 2009: December31, 2009 Balance Ratio (dollarsinmillions) Tier 1 capital $ 46,670 15.3 % Total capital 49,955 16.4 % RWAs 305,000 Adjusted average assets 804,456 Tier 1 leverage 5.8 % The Companys Significant U.S. Bank Operating Subsidiaries.The Companys domestic bank operating subsidiaries are subject to various regulatory capital requirements as administered by U.S. federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional, discretionary actions by regulators that, if undertaken, could have a direct material effect on the Companys U.S. bank operating subsidiaries financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Companys U.S. bank operating subsidiaries must meet specific capital guidelines that involve quantitative measures of the Companys U.S. bank operating subsidiaries assets, liabilities and c

Total Equity.

Total Equity.
	12 Months Ended Dec. 31, 2009 USD / shares
Total Equity.	13.Total Equity. Morgan Stanley Shareholders Equity. Common Stock.Changes in shares of common stock outstanding for 2009, fiscal 2008 and the one month ended December31, 2008 were as follows (share data in millions): 2009 Fiscal 2008 One Month Ended December31, 2008 Shares outstanding at beginning of period 1,074 1,056 1,048 Public offerings of common stock 276 Net impact of stock option exercises and other share issuances 13 57 26 Treasury stock purchases(1) (2 ) (65 ) Shares outstanding at end of period 1,361 1,048 1,074 (1) Treasury stock purchases includes repurchases of common stock for employee tax withholding. Treasury Shares.In December 2006, the Company announced that its Board of Directors had authorized the repurchase of up to $6 billion of the Companys outstanding common stock. The share repurchase program considers, among other things, business segment capital needs, as well as equity-based compensation and benefit plan requirements. During 2009 and the one month ended December31, 2008, the Company did not purchase any of its common stock as part of its share repurchase program. During fiscal 2008, the Company repurchased $711million of the common stock as part of the share repurchase program at an average cost of $18.14 per share. As of December31, 2009, the Company had approximately $1.6 billion remaining under its current share repurchase authorization. Share repurchases by the Company are subject to regulatory approval. CIC Investment.In December 2007, the Company sold Equity Units that included contracts to purchase Company common stock (see Stock Purchase Contracts herein) to a wholly owned subsidiary of CIC for approximately $5,579 million. As a result of the transaction with Mitsubishi UFJ Financial Group, Inc. (MUFG) described under Stock Purchase Contracts below, upon settlement of the Equity Units, CIC will be entitled to receive 116,062,911 shares of the Companys common stock, subject to anti-dilution adjustments. In June 2009, to maintain its pro rata share in the Companys share capital, CIC participated in the Companys registered public offering of 85,890,277 shares by purchasing 45,290,576 shares of the Companys common stock. CIC is a passive financial investor and has no special rights of ownership nor a role in the management of the Company. A substantial portion of the investment proceeds from the offering of the Equity Units was treated as Tier 1 capital for regulatory capital purposes. As described below, the Equity Units consist of interests in trust preferred securities issued by Morgan Stanley Capital Trust A (Series A Trust), Morgan Stanley Capital Trust B (Series B Trust) or Morgan Stanley Capital Trust C (Series C Trust) (each a Morgan Stanley Capital Trust and, collectively, the Trusts) and stock purchase contracts issued by the Company. The only assets held by the Trusts are junior subordinated debentures issued by the parent company. Equity Units. Each Equity Unit has a stated amount of $1,000 per unit consisting of: (i) an undivided bene

Earnings per Common Share.

Earnings per Common Share.
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings per Common Share.	14.Earningsper Common Share. Basic EPS is computed by dividing income available to Morgan Stanley common shareholders by the weighted average number of common shares outstanding for the period. Common shares outstanding include common stock and vested restricted stock unit awards where recipients have satisfied either the explicit vesting terms or retirement eligibility requirements. Diluted EPS reflects the assumed conversion of all dilutive securities. The Company calculates EPS using the two-class method (see Note 2) and determines whether instruments granted in share-based payment transactions are participating securities. The following table presents the calculation of basic and diluted EPS (in millions, except for per share data): 2009 Fiscal2008 Fiscal2007 One Month Ended December31, 2008 Basic EPS: Income (loss) from continuing operations $ 1,193 $ 1,158 $ 2,200 $ (1,295 ) Net gain on discontinued operations 213 620 1,049 10 Net income (loss) 1,406 1,778 3,249 (1,285 ) Net income applicable to non-controlling interests 60 71 40 3 Net income (loss) applicable to Morgan Stanley 1,346 1,707 3,209 (1,288 ) Less: Preferred dividends (Series A Preferred Stock) (45 ) (53 ) (68 ) (15 ) Less: Preferred dividends (Series B Preferred Stock) (784 ) (200 ) Less: Preferred dividends (Series C Preferred Stock) (68 ) (30 ) Less: Partial Redemption of Series C Preferred Stock (202 ) Less: Preferred dividends (Series D Preferred Stock) (212 ) (44 ) (63 ) Less: Amortization and acceleration of issuance discount for SeriesD Preferred Stock (see Note 13) (932 ) (15 ) (13 ) Less: Allocation of earnings to unvested restricted stock units(1) (10 ) (94 ) (165 ) (15 ) Less: Allocation of undistributed earnings to Equity Units (6 ) Net (loss) income applicable to Morgan Stanley common shareholders $ (907 ) $ 1,495 $ 2,976 $ (1,624 ) Weighted average common shares outstanding 1,185 1,028 1,002 1,002 (Loss) earnings per basic common share: Income (loss) from continuing operations $ (0.93 ) $ 0.92 $ 1.98 $ (1.63 ) Net gain on discontinued operations 0.16 0.53 0.99 0.01 (Loss) earnings per basic common share $ (0.77 ) $ 1.45 $ 2.97 $ (1.62 ) Diluted EPS: (Loss) earnings applicable to Morgan Stanley common shareholders $ (907 ) $ 1,495 $ 2,976 $ (1,624 ) Weighted average common shares outstanding 1,185 1,028 1,002 1,0

Interest and Dividends and Inte

Interest and Dividends and Interest Expense.
	12 Months Ended Dec. 31, 2009 USD / shares
Interest and Dividends and Interest Expense.	15.Interest and Dividends and Interest Expense. Details of Interest and dividends revenue and Interest expense were as follows (in millions): 2009 Fiscal 2008 One Month Ended December31, 2008 Interest and dividends(1): Financial instruments owned(2) $ 5,155 $ 9,961 $ 603 Receivables from other loans 229 784 15 Interest bearing deposits with banks(3) 241 19 Federal funds sold and securities purchased under agreements to resell and securities borrowed(3) 859 380 Other(3) 1,218 28,934 280 Total Interest and dividends revenue $ 7,702 $ 39,679 $ 1,297 Interest expense(1): Commercial paper and other short-term borrowings $ 51 $ 663 $ 33 Deposits 782 740 53 Long-term debt 4,898 7,793 579 Securities sold under agreements to repurchase and securities loaned(3) 1,374 355 Other(3) (393 ) 27,116 104 Total Interest expense $ 6,712 $ 36,312 $ 1,124 Net Interest and dividends revenue $ 990 $ 3,367 $ 173 (1) Interest income and expense and dividend income are recorded within the consolidated statements of income depending on the nature of the instrument and related market conventions. When interest and dividends are included as a component of the instruments fair value, interest and dividends are included within Principal transactionstrading revenues or Principal transactionsinvestment revenues. Otherwise, they are included within Interest and dividends income or Interest expense. (2) Interest expense on Financial instruments sold, not yet purchased is reported as a reduction to Interest and dividends revenues. (3) The Company considers its principal trading, investment banking, commissions, and interest and dividend income, along with the associated interest expense, as one integrated activity for each of the Companys separate businesses, and therefore, prior to December 2008, was unable to further breakout Interest and dividends and Interest expense (see Note 1).

Sale of Bankruptcy Claims Relat

Sale of Bankruptcy Claims Related to a Derivative Counterparty.
	12 Months Ended Dec. 31, 2009 USD / shares
Sale of Bankruptcy Claims Related to a Derivative Counterparty.	16.Sale of Bankruptcy Claims Related to a Derivative Counterparty. During 2009, the Company entered into multiple participation agreements with certain investors whereby the Company sold undivided participating interests representing 81% (or $1,105 million) of its claims totaling $1,362 million, pursuant to International Swaps and Derivatives Association (ISDA) master agreements, against a derivative counterparty that filed for bankruptcy protection. The Company received cash proceeds of $429 million and recorded a gain on sale of $319 million in 2009. The gain is reflected in the consolidated statement of income in Principal transactions-trading revenues within the Institutional Securities business segment. As a result of the bankruptcy of the derivative counterparty, the Company, as contractually entitled, exercised remedies as the non-defaulting party and determined the value of the claims under the ISDA master agreements in a commercially reasonable manner. The Company filed its claims with the bankruptcy court. In connection with the sale of the undivided participating interests in a portion of the claims, the Company provided certain representations and warranties related to the allowance of the amount stated in the claims submitted to the bankruptcy court. The bankruptcy court will be evaluating all of the claims filed against the derivative counterparty. To the extent, in the future, any portion of the stated claims is disallowed or reduced by the bankruptcy court in excess of a certain amount, then the Company must refund a portion of the purchase price plus interest from the date of the participation agreements to the repayment date. The maximum amount that the Company could be required to refund is the total proceeds of $429 million plus interest. The Company recorded a liability for the fair value of this possible disallowance. The fair value was determined by assessing mid-market values of the underlying transactions, where possible, prevailing bid-offer spreads around the time of the bankruptcy filing, and applying valuation adjustments related to estimating unwind costs. The investors, however, bear full price risk associated with the allowed claims as it relates to the liquidation proceeds from the bankruptcy estate. The Company also agreed to service the claims and, as such, recorded a liability for the fair value of the servicing obligation. The Company will continue to measure these obligations at fair value with changes in fair value recorded in earnings. These obligations are reflected in the consolidated statement of financial condition as Financial instruments sold, not yet purchasedderivatives and other contracts, in Note 4 as Level 3 instruments, and in Note 10 as Derivatives not designated as accounting hedges. The disallowance obligation is also reflected in Note 11 in the guarantees table.

Other Revenues.

Other Revenues.
	12 Months Ended Dec. 31, 2009 USD / shares
Other Revenues.	17.Other Revenues. Details of Other revenues were as follows: 2009 Fiscal 2008 One Month Ended December31, 2008 (dollars in millions) Repurchase of long-term debt (see Note 9) $ 491 $ 2,252 $ 73 Morgan Stanley Wealth Management S.V., S.A.U(1) 743 Other 347 857 34 Total $ 838 $ 3,852 $ 107 (1) In the second quarter of fiscal 2008, the Company sold Morgan Stanley Wealth Management S.V., S.A.U. (MSWM S.V.), its Spanish onshore mass affluent wealth management business. The Company recognized a pre-tax gain of approximately $687 million, net of transaction-related charges of approximately $50 million. The results of MSWM S.V. are included within the Global Wealth Management Group business segment through the date of sale.

Employee Stock-Based Compensati

Employee Stock-Based Compensation Plans.
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Stock-Based Compensation Plans.	18.Employee Stock-Based Compensation Plans. The accounting guidance for stock-based compensation requires measurement of compensation cost for equity-based awards at fair value and recognition of compensation cost over the service period, net of estimated forfeitures (see Note 2). The components of the Companys stock-based compensation expense (net of cancellations) are presented below: 2009 Fiscal 2008 Fiscal 2007 One Month Ended December31, 2008 (dollars in millions) Deferred stock $ 1,120 $ 1,659 $ 1,580 $ 66 Stock options 17 83 240 5 Employee Stock Purchase Plan(1) 4 10 9 Total(2) $ 1,141 $ 1,752 $ 1,829 $ 71 (1) The Company discontinued the Employee Stock Purchase Plan effective June1, 2009. (2) Amounts for 2009 include $198 million primarily related to equity awards that were granted in 2010 to employees who are retirement-eligible under the award terms. Amounts for fiscal 2008 and fiscal 2007 include $90 million and $345 million of accrued stock-based compensation expense primarily related to year-end equity awards granted in December 2008 and December 2007, respectively, to employees who are retirement-eligible under the award terms. Amounts for the one month ended December 31, 2008 include $2 million primarily related to equity awards that were granted in 2010 to employees who are retirement-eligible under the award terms. The table above excludes stock-based compensation expense recorded in discontinued operations, which was approximately $11 million, $40 million, $30 million and $2 million for 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively. See Note 23 for additional information on discontinued operations. The tax benefit for stock-based compensation expense related to deferred stock and stock options was $380 million, $557million, $716 million and $23 million for 2009, fiscal 2008, fiscal 2007 and the one month ended December31, 2008, respectively. The tax benefit for stock-based compensation expense included in discontinued operations in 2009, fiscal 2008, fiscal 2007 and the one month ended December31, 2008 was approximately $3million, $15 million, $12 million, and $1million, respectively. As of December31, 2009 and December31, 2008, the Company had approximately $762 million and $1,689 million, respectively, of unrecognized compensation cost related to unvested stock-based awards (excluding 2009 year-end awards granted in January 2010 to nonretirement-eligible employees, which will begin to be amortized in 2010). The unrecognized compensation cost relating to unvested stock-based awards expected to vest will primarily be recognized over the next two years. In connection with awards under its equity-based compensation plans, the Company is authorized to issue shares of its common stock held in treasury or newly issued shares. As of December31, 2009 and December 31, 2008, approximately 107million and 82 million shares, respectively, were available for future grant under these plans. The Company

Employee Benefit Plans.

Employee Benefit Plans.
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plans.	19.Employee Benefit Plans. The Company sponsors various pension plans for the majority of its U.S. and non-U.S. employees. The Company provides certain other postretirement benefits, primarily health care and life insurance, to eligible U.S. employees. The Company also provides certain postemployment benefits to certain former employees or inactive employees prior to retirement. For fiscal 2008, the Company adopted the measurement date provision as required under current accounting guidance under the alternative transition method, which requires the measurement date to coincide with the fiscal year-end date. The Company recorded an after-tax charge of approximately $13 million to equity ($21 million before tax) upon adoption of this requirement. Pension and Other Postretirement Plans.Substantially all of the U.S. employees of the Company hired before July1, 2007 and its U.S. affiliates are covered by a non-contributory, defined benefit pension plan that is qualified under Section401(a) of the Internal Revenue Code (the U.S. Qualified Plan). Unfunded supplementary plans (the Supplemental Plans) cover certain executives. In addition, certain of the Companys non-U.S. subsidiaries also have defined benefit pension plans covering substantially all of their employees. These pension plans generally provide pension benefits that are based on each employees years of credited service and on compensation levels specified in the plans. The Companys policy is to fund at least the amounts sufficient to meet minimum funding requirements under applicable employee benefit and tax laws. Liabilities for benefits payable under the Supplemental Plans are accrued by the Company and are funded when paid to the beneficiaries. The Companys U.S. Qualified Plan was closed to new hires effective July1, 2007. In lieu of a defined benefit pension plan, eligible employees (excluding legacy Smith Barney employees) who were first hired, rehired or transferred to a U.S. benefits eligible position on or after July1, 2007 will receive a retirement contribution under the 401(k) plan. The amount of the retirement contribution is included in the Companys 401(k) cost and will be equal to between 2% and 5% of eligible pay up to the annual Internal Revenue Code Section 401(a)(17) limit based on years of service as of December31. The Company also has an unfunded postretirement benefit plan that provides medical and life insurance for eligible U.S. retirees and medical insurance for their dependents. The following tables present information for the Companys pension and postretirement plans on an aggregate basis: Net Periodic Benefit Expense. The following table presents the components of the net periodic benefit expense: Pension Postretirement 2009 Fiscal 2008 Fiscal 2007 One Month Ended December31, 2008 2009 Fiscal 2008 Fiscal 2007 One Month Ended December31, 2008 (dollars in millions) Service cost $ 116 $ 102 $ 107 $ 8 $ 12 $ 8 $ 7 $ 1 Interest cost 152 135 124 12 12 10 8 1 E

Income Taxes.

Income Taxes.
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes.	20.Income Taxes. The provision for (benefit from) income taxes from continuing operations consisted of: 2009 Fiscal 2008 Fiscal 2007 One Month Ended December31, 2008 (dollars in millions) Current: U.S. federal $ 160 $ 445 $ 302 $ 42 U.S. state and local 45 78 147 8 Non-U.S. 338 1,181 2,428 8 543 1,704 2,877 58 Deferred: U.S. federal (463 ) (1,413 ) (2,078 ) (671 ) U.S. state and local (362 ) (109 ) (106 ) 30 Non-U.S. (54 ) (203 ) (117 ) (149 ) (879 ) (1,725 ) (2,301 ) (790 ) (Benefit from) provision for income taxes from continuing operations $ (336 ) $ (21 ) $ 576 $ (732 ) (Benefit from) provision for income taxes from discontinued operations $ (53 ) $ 501 $ 633 $ 8 The following table reconciles the provision for (benefit from) income taxes to the U.S. federal statutory income tax rate: 2009 Fiscal 2008 Fiscal 2007 One Month Ended December31, 2008 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits (24.2 ) (1.7 ) 0.9 (1.2 ) Lower tax rates applicable to non-U.S. earnings (25.3 ) (21.7 ) (2.4 ) 1.0 Goodwill 20.2 Domestic tax credits (22.5 ) (19.9 ) (7.4 ) 1.4 Tax exempt income (6.9 ) (15.7 ) (4.0 ) 0.2 Other 4.7 2.0 (1.4 ) (0.3 ) Effective income tax rate(1) (39.2 )% (1.8 )% 20.7 % 36.1 % (1) The effective tax rate for 2009 includes a tax benefit of $331 million, or $0.28 per diluted share, resulting from the cost of anticipated repatriation of non-U.S. earnings at lower than previously estimated tax rates. Excluding this benefit, the annual effective tax rate for 2009 would have been a benefit of 1%. As of December31, 2009, the Company had approximately $4.0 billion of earnings attributable to foreign subsidiaries for which no provisions have been recorded for income tax that could occur upon repatriation. Except to the extent such earnings can be repatriated tax efficiently, they are permanently invested abroad. It is not practicable to determine the amount of income taxes payable in the event all such foreign earnings are repatriated. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the Companys deferred tax assets and liabilities as of December31, 2009 and D

Segment and Geographic Informat

Segment and Geographic Information.
	12 Months Ended Dec. 31, 2009 USD / shares
Segment and Geographic Information.	21.Segment and Geographic Information. The Company structures its segments primarily based upon the nature of the financial products and services provided to customers and the Companys management organization. The Company provides a wide range of financial products and services to its customers in each of its business segments: Institutional Securities, Global Wealth Management Group and Asset Management. For further discussion of the Companys business segments, see Note1. Revenues and expenses directly associated with each respective segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular segment are allocated based upon the Companys allocation methodologies, generally based on each segments respective net revenues, non-interest expenses or other relevant measures. As a result of treating certain intersegment transactions as transactions with external parties, the Company includes an Intersegment Eliminations category to reconcile the business segment results to the Companys consolidated results. Income before taxes in Intersegment Eliminations primarily represents the effect of timing differences associated with the revenue and expense recognition of commissions paid by the Asset Management business segment to the Global Wealth Management Group business segment associated with sales of certain products and the related compensation costs paid to the Global Wealth Management Group business segments global representatives. Intersegment eliminations also reflect the effect of fees paid by the Institutional Securities business segment to the Global Wealth Management Group business segment related to the bank deposit program. Selected financial information for the Companys segments is presented below: 2009 Institutional Securities GlobalWealth Management Group Asset Management Intersegment Eliminations Total (dollars in millions) Total non-interest revenues $ 12,692 $ 8,729 $ 1,411 $ (464 ) $ 22,368 Net interest 85 661 (74 ) 318 990 Net revenues $ 12,777 $ 9,390 $ 1,337 $ (146 ) $ 23,358 Income (loss) from continuing operations beforeincome taxes $ 982 $ 559 $ (673 ) $ (11 ) $ 857 (Benefit from) provision for income taxes (293 ) 178 (218 ) (3 ) (336 ) Income (loss) from continuing operations 1,275 381 (455 ) (8 ) 1,193 Discontinued operations(1): Gain (loss) from discontinued operations 503 (357 ) 14 160 Provision for (benefit from) income taxes 222 (275 ) (53 ) Gain (loss) on discontinued operations(2) 281 (82 ) 14 213 Net income (loss) 1,556 381 (537 ) 6 1,406

Joint Venture.

Joint Venture.
	12 Months Ended Dec. 31, 2009 USD / shares
Joint Venture.	22.Joint Venture. Japan Securities Joint Venture.On March26, 2009, MUFG and the Company announced that they had signed a memorandum of understanding to form a securities joint venture between Mitsubishi UFJ Securities Co., Ltd. and MSJS. On November 18, 2009, MUFG and the Company announced further plans to integrate their securities operations in Japan by executing the joint venture through two entities, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Morgan Stanley MUFG Securities Co., Ltd., rather than through a single company. The two joint venture companies will collaborate in a number of business and product areas, including offering the Companys global products and services to retail and middle market customers in Japan. The closing of this transaction is subject to the execution of the definitive agreements and regulatory approvals and other customary closing conditions. In addition, on June30, 2009, MUFG and the Company announced the creation of a loan marketing joint venture in the Americas and business referral arrangements in Asia, Europe, the Middle East and Africa. MUFG and the Company also entered into a referral agreement for commodities transactions executed outside of Japan and a transfer of personnel between MUFG and the Company for the sharing of best practices and expertise.

Discontinued Operations.

Discontinued Operations.
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations.	23.Discontinued Operations. Retail Asset Management Business.On October19, 2009, as part of a restructuring of its Asset Management business segment, the Company entered into a definitive agreement to sell substantially all of Retail Asset Management, including Van Kampen, to Invesco. This transaction allows the Companys Asset Management business segment to focus on its institutional client base, including corporations, pension plans, large intermediaries, foundations and endowments, sovereign wealth funds, and central banks, among others. Under the terms of the definitive agreement, Invesco will purchase substantially all of Retail Asset Management, operating under both the Morgan Stanley and Van Kampen brands, in a stock and cash transaction.The Company will receive a 9.4% minority interest in Invesco. The transaction, which has been approved by the Boards of Directors of both companies, is expected to close in mid-2010, subject to customary regulatory, client and fund shareholder approvals. Total assets of Retail Asset Management included in the Companys consolidated statement of financial condition as of December31, 2009 approximated $743 million. The results of Retail Asset Management are included in discontinued operations for all periods presented. MSCI.On July31, 2007, the Company announced that it would sell a minority interest in its subsidiary, MSCIin an IPO. In November 2007, MSCI completed its IPO of 16.1million shares and received net proceeds of approximately $265 million, net of underwriting discounts, commissions and offering expenses. As the IPO was part of a broader corporate reorganization, contemplated by the Company at the IPO date, the increase in the carrying amount of the Companys investmentin MSCI was recorded in Paid-in capitalin the Companys consolidated statement of financial conditionand the Companysconsolidated statement of changes in total equity at November30, 2007. In fiscal 2008, the Company sold approximately 53million of its MSCI shares in two secondary offerings for net proceeds of approximately $1,560 million. During the second quarter of 2009, the Company sold all of its remaining 28million shares in MSCI in a secondary offering for net proceeds of approximately $573 million. The results of MSCI prior to the divestiture are included in discontinued operations for all periods presented. The results of MSCI were formerly included in the Institutional Securities business segment. Crescent.Discontinued operations in 2009, fiscal 2008 and the one month ended December 31, 2008 include operating results and gains (losses) related to the disposition of Crescent, a former real estate subsidiary of the Company. The Company completed the disposition of Crescent in the fourth quarter of 2009, whereby the Company transferred its ownership interest in Crescent to Crescents primary creditor in exchange for full release of liability on the related loans. The results of Crescent were formerly included in the Asset Management business segment. The Company did not consolidate Crescent prior to May 2008. DFS.On June30, 2007, the Company completed the Discover Spin-off. The Company distributed all of the

Parent Company.

Parent Company.
	12 Months Ended Dec. 31, 2009 USD / shares
Parent Company.	24.Parent Company. Parent Company Only Condensed Statements of Financial Condition (dollars in millions, except share data) December31, 2009 December31, 2008 Assets: Cash and due from banks $ 13,262 $ 23,629 Interest bearing deposits with banks 3,537 21,610 Financial instruments owned 7,049 8,160 Securities purchased under agreement to resell with affiliate 48,048 18,793 Advances to subsidiaries: Bank and bank holding company 1,872 3,036 Non-bank 157,782 174,431 Investment in subsidiaries, at equity: Bank and bank holding company 5,206 6,328 Non-bank 35,425 30,110 Other assets 8,749 6,303 Total assets $ 280,930 $ 292,400 Liabilities and Shareholders Equity: Commercial paper and other short-term borrowings $ 1,151 $ 6,894 Financial instruments sold, not yet purchased 1,588 Payables to subsidiaries 41,275 52,327 Other liabilities and accrued expenses 3,068 3,507 Long-term borrowings 187,160 180,919 234,242 243,647 Commitments and contingencies Shareholders equity: Preferred stock 9,597 19,168 Common stock, $0.01 par value; Shares authorized: 3,500,000,000 in 2009 and 2008; Shares issued: 1,487,850,163 in 2009 and 1,211,701,552 in 2008; Shares outstanding: 1,360,595,214 in 2009 and 1,074,497,565 in 2008 15 12 Paid-in capital 8,619 459 Retained earnings 35,056 36,154 Employee stock trust 4,064 4,312 Accumulated other comprehensive loss (560 ) (420 ) Common stock held in treasury, at cost, $0.01 par value; 127,254,949 shares in 2009 and 137,203,987 shares in 2008 (6,039 ) (6,620 ) Common stock issued to employee trust (4,064 ) (4,312 ) Total shareholders equity 46,688 48,753 Total liabilities and shareholders equity $ 280,930 $ 292,400 Parent Company Only Condensed Statements of Income and Comprehensive Income (dollars in millions) 2009 Fiscal 2008 Fiscal 2007 OneMonthEnded December31, 2008 Revenues: Dividends from bank subsidiary $ $ $ 6 $ Dividends from non-bank subsidiary 6,117 4,209 6,969 14 Undistributed loss of subsidiaries (307 ) (6,844 ) (3,500 ) (1,305 ) Principal transactions (5,592 ) 7,547 613 548 Other 484 1,451 (2 ) 612 Total non-interest revenues 702 6,363 4,086 (131 ) Interest and dividends 4,432 11,098 9,211 658 Interest expense 6,153 12,167 9,834 1,164

Transition Period Financial Inf

Transition Period Financial Information.
	12 Months Ended Dec. 31, 2009 USD / shares
Transition Period Financial Information.	25. Transition Period Financial Information. OneMonth EndedDecember31, 2008 2007 (Unaudited) (dollarsinmillions,exceptshare andpersharedata) Income Statement Data: Net revenues $ (968 ) $ 2,907 (Loss) income from continuing operations before income taxes $ (2,027 ) $ 903 (Benefit from) provision for income taxes (732 ) 303 (Loss) income from continuing operations (1,295 ) 600 Discontinued operations: Gain from discontinued operations 18 52 Provision for income taxes 8 21 Gain on discontinued operations 10 31 Net (loss) income $ (1,285 ) $ 631 Net income applicable to non-controlling interest $ 3 $ 5 Net (loss) income applicable to Morgan Stanley $ (1,288 ) $ 626 Amounts attributable to Morgan Stanley common shareholders: (Loss) income from continuing operations, net of tax $ (1,295 ) $ 596 Gain from discontinued operations, net of tax 7 30 Net (loss) income applicable to Morgan Stanley $ (1,288 ) $ 626 Per Share Data: (Loss) earnings per basic common share: (Loss) income from continuing operations $ (1.63 ) $ 0.55 Gain on discontinued operations 0.01 0.03 (Loss) earnings per basic common share $ (1.62 ) $ 0.58 (Loss) earnings per diluted common share: (Loss) income from continuing operations $ (1.63 ) $ 0.54 Gain on discontinued operations 0.01 0.03 (Loss) earnings per diluted common share $ (1.62 ) $ 0.57 Average common shares outstanding: Basic 1,002,058,928 1,001,916,565 Diluted 1,002,058,928 1,014,454,968 Balance Sheet Data: Total assets $ 676,764 $ 1,097,021 Total capital 208,008 198,210 Long-term borrowings 179,835 199,459 Total Morgan Stanley shareholders equity 48,753 31,777 Non-controlling interests 703 1,571 Total equity 49,456 33,348

Quarterly Results

Quarterly Results (unaudited).
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly Results (unaudited).	26.Quarterly Results (unaudited). 2009 Quarter 2008 Fiscal Quarter First Second Third Fourth First Second(1) Third Fourth(2) OneMonth Ended December31, 2008 (dollars in millions, except per share data) Total non-interest revenues $ 2,699 $ 5,638 $ 7,801 $ 6,230 $ 6,888 $ 5,326 $ 5,734 $ 796 $ (1,141 ) Net interest 197 (443 ) 624 612 1,110 107 1,224 926 173 Net revenues 2,896 5,195 8,425 6,842 7,998 5,433 6,958 1,722 (968 ) Total non-interest expenses 3,530 5,784 6,983 6,204 5,869 4,815 5,737 4,553 1,059 (Loss) income from continuing operations before income taxes (634 ) (589 ) 1,442 638 2,129 618 1,221 (2,831 ) (2,027 ) (Benefit from) provision for income taxes (597 ) (321 ) 510 72 624 102 233 (980 ) (732 ) (Loss) income from continuing operations (37 ) (268 ) 932 566 1,505 516 988 (1,851 ) (1,295 ) Discontinued operations(3): (Loss) net gain from discontinued operations (252 ) 485 (226 ) 153 104 862 755 (601 ) 18 (Benefit from) provision for income taxes (99 ) 184 (87 ) (51 ) 41 337 296 (174 ) 8 Net (loss) gain on discontinued operations (153 ) 301 (139 ) 204 63 525 459 (427 ) 10 Net (loss) gain (190 ) 33 793 770 1,568 1,041 1,447 (2,278 ) (1,285 ) Net (loss) gain applicable to non-controlling interests (13 ) (116 ) 36 153 17 16 20 18 3 Net (loss) gain applicable to Morgan Stanley $ (177 ) $ 149 $ 757 $ 617 $ 1,551 $ 1,025 $ 1,427 $ (2,296 ) $ (1,288 ) (Loss) earnings applicable to Morgan Stanley common shareholders(4) $ (578 ) $ (1,256 ) $ 498 $ 376 $ 1,440 $ 947 $ 1,331 $ (2,380 ) $ (1,624 ) (Loss) earnings per basic common share(5): (Loss) income from continuing operations $ (0.41 ) $ (1.36 ) $ 0.48 $ 0.14 $ 1.36 $ 0.44 $ 0.87 $ (1.92 ) $ (1.63 ) (Loss) income gain on discontin

Subsequent Events.

Subsequent Events.
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events.	27.Subsequent Events. Settlement with DFS.On February 11, 2010, the Company and DFS entered into an agreement in which each party released the other party from claims related to the sharing of proceeds from the lawsuit against Visa and MasterCard. In addition, the Company and DFS entered into an agreement to provide that payments made by DFS to the Company in satisfaction of its obligations under the special dividend declared by DFS in June 2007, shall not exceed $775 million. Also on February 11, 2010, DFS paid the Company $775 million in complete satisfaction of its obligations to the Company under the special dividend. The payment will be included in discontinued operations in the Companys condensed consolidated statement of income for the first quarter of 2010. Common Dividend.On January20, 2010, the Company announced that its Board of Directors declared a quarterly dividend per common share of $0.05. The dividend is payable on February12, 2010 to common shareholders of record on January29, 2010. The Company has evaluated its subsequent events through the filing date of this Form 10-K Report.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Trading Symbol	MS
Entity Registrant Name	MORGAN STANLEY
Entity Central Index Key	0000895421
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,398,087,044
Entity Public Float			$38,566,093,047