On February 5, 1997 the company announced a merger with Dean Witter Discover and Company, the spun-off financial services business of Sears Roebuck. The merged company was briefly known as "Morgan Stanley Dean Witter Discover & Co. " until 1998 and then "Morgan Stanley Dean Witter & Co." until late 2001.
Philip J. Purcell, who had headed Dean Witter Discover, has been chairman and chief executive officer since the merger.
Misleading financial analysis was disclosed amongst investment banks in the UK, and Sir Howard Davies, chairman of the UK Financial services authority, decided not to intervene. Davies was also an employee of the bank. In criminal activity in the US similar to that alleged in the UK, Morgan Stanley was fined $125m.
