Morgan Stanley Managed Epstein Trust Accounts Until 2019

• Morgan Stanley opened an Epstein trust account in March 2019, two years after its risk officers had closed another Epstein account in 2017 and notified him of terminating their relationship
• The 2019 account opening occurred after years of heightened media scrutiny, including a 2016 lawsuit against Ghislaine Maxwell and investigative reporting by the Miami Herald in 2018
• Other major banks had already distanced themselves: JPMorgan terminated its relationship with Epstein in 2013, and Deutsche Bank notified him of account closures in December 2018

Morgan Stanley Maintained Epstein Trust Accounts Until 2019

Key Facts:

Morgan Stanley opened and managed accounts for Jeffrey Epstein's trusts between 2015 and 2019, according to U.S. Justice Department documents released February 18. This occurred years after Epstein's 2008 conviction and registration as a sex offender, and during a period when other major Wall Street banks were severing ties with him.

Timeline of Events:

• 2015: Morgan Stanley's relationship with Epstein-linked entities was active
• 2017: Bank's risk officers closed an Epstein trust account after notifying him of the relationship termination
• March 2019: Morgan Stanley opened a new account for Epstein's Butterfly Trust
• 2019: The newly opened account was closed shortly after opening, following Epstein's July arrest

Market Context:

The revelations add Morgan Stanley to a list of major financial institutions scrutinized for Epstein connections. JPMorgan maintained ties from 1998-2013 and faced legal action, while Deutsche Bank closed Epstein's accounts after his 2019 arrest. Both institutions previously paid settlements related to their Epstein relationships.

Financial Details:

Epstein's estate paid $105 million to the U.S. Virgin Islands to settle sex trafficking claims and reached a $290 million settlement with victims.

Compliance Implications:

Reuters found no evidence of wrongdoing by Morgan Stanley, though the bank's decision to open a 2019 account two years after closing another raises questions about due-diligence protocols. U.S. regulations require banks to verify customers and monitor suspicious transactions. Morgan Stanley declined to comment on its banking relationship with Epstein.