Morgan Stanley is trying to tempt high-net-worth clients by offering Federal Deposit Insurance Corp. insurance on bank deposits ranging from $1 million to $100 million, a report says. Could Lebron James be one of these clients?
Morgan Stanley is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to customers, including corporations, governments, financial institutions and individuals. The company operates in three business segments: Institutional Securities, Global Wealth Management Group, and Asset Management.
Dow Jones Newswires reports Morgan Stanley is paying the FDIC an additional fee for the extra insurance, which goes above the normal maximum of $250,000 in insurance per person per account.
The deposit insurance plan coincides with Morgan Stanley’s efforts, in the wake of converting into a bank holding company in September, to boost its deposits. On September 21, 2008, it was reported that the Federal Reserve allowed Morgan Stanley to change its status from investment bank to bank holding company.
Dow Jones reports deposits in the Morgan Stanley program can earn up to 0.5% interest, which is the maximum that the FDIC allows, a company spokeswoman says.
The program is for individuals only, not businesses or foundations, according to the report.
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