Originally published: June 19, 2008
Source: Conde Nast Portfolio
Like most global investment banks, Morgan Stanley is having a rough go at it these days. And it appears that its financial woes on the macro level have claimed a new victim: its microfinance business. Morgan Stanley formed its microfinance institutions group last September, proudly calling it "the first time that an investment bank has established a group dedicated to serving microfinance institutions."
Today, that group looks more like a small tea party. Ian Callaghan and Ellen Brunsberg, the two executives charged with overseeing the microfinance efforts from Morgan's London office, are no longer with the firm, Portfolio.com has learned from several people in the industry. Moreover, the group that consisted of about a dozen dedicated employees at launch and around 20 others on a rotational basis from other departments in the bank, has dwindled down to just four or five employees, according to one source close to the bank's unit.
Morgan Stanley responded: "Morgan Stanley remains committed to Microfinance and continues to pursue opportunities in the space. We are constantly evaluating business conditions to ensure we are right-sized for the current market environment and we continue to utilize employees across the Firm for this initiative."