Is Morgan Stanley FDIC Insured?

I had a bit of an odd situation freshman year of college and I cannot work under an FDIC insured bank for the next few years. This takes off GS and most Investment banks, honestly never even seen an Investment banking internship not under a FDIC insured bank...

However, when I look up Morgan Stanley I get a bit of confusion. Their site says that MSSB is not FDIC insured, however FDIC bankfind shows that they are insured in 2-3 different locations. Does this mean that if I were to apply to a certain location, I could actually work for them? I'm extremely confused by this.

29 Comments
 
Best Response

federally chartered banks are insured by the FDIC, broker-dealers are not. but big broker dealers (BAML) usually have an affiliated federally chartered bank (Bank of America NA)

example: Wells Fargo NA, insured by FDIC, just like MS Private Bank (a division of MS and affiliated with their PWM arm). however, Morgan Stanley Smith Barney (their broker dealer) and Wells Fargo Advisors are not FDIC insured.

just about every large firm will have an arm that's FDIC insured.

why can't you work for a FDIC insured bank and how is the FDIC going to enforce this?

 

Was buying food from my school market, and evidently didn't buy a protein bar that was on the counter. Got called 6 months later and got arrested for shoplifting, but was later dismissed with community service. (was advised that it was the easiest way to get out of it.) However FDIC states that anyone that has been convicted of or entering into a program for dismissal, are not allowed to work under their firm if it is related to a breach of moral trust...

Also just my luck that it is within a state that does not do expunging. So I must wait 4 more years before I can be considered what they call "de minimis" since it was like $6.

I thought Smith Barney was their Wealth Management? And even though it only specifies certain locations, I can't work at any of them?

Man, this sucks... So I guess my only shot is AM, HF, or PE? Or do you think my arrest record for shoplifting is just gonna screw me over everywhere?

Thanks for responding with good information. I usually get nothing when asking around.

 

Yes, they actually told me that the reason they identified me is because I bought over $20 worth of food with my card at the same exact time. The footage shows me buying my food, picking up everything(including the protein bar) and walking out. I think that I would need to get hire a lawyer or someone to help me through the process with the FDIC. They seem to be sorta strict on who they waive especially if it is within 2 years of the mishap. I'm not sure I could afford to hire help at the moment unfortunately.

 

This is absolutely ridiculous. Who advised you to take community service? Who the fuck files charges over two protein bars and what DA in their right mind would prosecute? This infuriates me.

Given that this happened on campus...do you have a legal record or was this through school only?

Anyways here is a link: https://www.fdic.gov/regulations/laws/FORMS/section19.html

 

This is one of the strangest stories I have ever read.

I am not calling you a liar, but am I correct in understanding that a cashier forgot to scan an item at the register, and six months later you were identified and arrested for larceny? Like the store owner showed the footage to the police and they made it a point to find you? Why were they even looking at old footage for a stolen protein bar?

 

But yes, I even waited for my friend and no one in the entire store notified me that I was walking out with something I hadn't purchased. I think they are forced to look into any sort of complaint, but am not sure why, who, or how they found anything at all honestly.

 

The problem is that any FDIC insured bank is actually not allowed to hire me for 4 years because of the situation. Takes a lot of options off the table.

 

Dude, it sounds like you need to do a lot more research and figure out what your situation actually is. Was it classified as a misdemeanor or a felony? Did it actually count as an arrest and a conviction? Because you say the case as dismissed. What does your criminal record say? Have you even bothered to pull your arrest record and FBI background check? It costs all of $18 dollars last time I checked.

Also what does the actual letter of the law say in regards to employment eligibility? I did a 5 second google search to find the following on the FDIC page:

(5) De minimis Offenses. Approval is automatically granted and an application will not be required where the covered offense is considered de minimis, because it meets all of the following criteria: • There is only one conviction or program entry of record for a covered offense; • The offense was punishable by imprisonment for a term of one year or less and/or a fine of $2,500 or less, and the individual served three (3) days or less of actual jail time; • The conviction or program was entered at least five years prior to the date an application would otherwise be required; and • The offense did not involve an insured depository institution or insured credit union.

Assuming you have no other offenses that would require an application within 5 years as defined here, you should be completely fine, but I am not a lawyer, so I could be grossly misinterpreting that part. In any event, lawyer up so you can figure out what your situation is.

 

Yes, it's a dismissed misdemeanor. In order to dismiss the case I had to do community service(Pre-trial diversion). That section 19 article that you're referencing specifically details that pre-trial diversion = no FDIC employment. Unless of course if I wait 5 years since I meet all of those qualifications. The person I spoke to told me that they rarely give waivers. So my main question is just trying to find firms that aren't FDIC insured. As my 5 years will be up a year out of college.

 

Morgan Stanley is not FDIC insured, as the FDIC only insures banks, and MS is a bank holding company regulated by the Fed. MS's bank subsidiaries are FDIC members though. That said, it may not be applicable here because Section 19 Says that BHCs are treated as if they were FDIC insured banks.

That said, when you're filling out the application, they may ask for any convicted felonies or misdemeanors to which you can honestly answer no.

Or you could just apply to any brokers that don't have a bank subsidiary and the FDIC rules won't apply, since we're only talking about a year. Or maybe apply to an MSF and then recruit for the BBs in a year.

I'd still say lawyer up though. Really blows that all this is coming from just a stupid protein bar, from a freaking on-campus store.

 

You need to call up a lawyer, a good one, and pay for a quick phone call with them. Probably no more than an hour will be long enough to get this sorted out. It will probably cost about $100-$150 or so. GOOD lawyers, not on campus lawyers. Not 1800 lawyers. Not bus advertising lawyers. GOOD ones. OR perhaps if your campus has a notable law school, there might be a law professor you could chat with.

This seems fairly ridiculous.

 

Ut velit vitae vel quia occaecati similique. Eius fugit architecto est illo.

 

Qui nesciunt praesentium aut similique facilis quod culpa quod. Assumenda incidunt ratione harum doloribus neque quibusdam rem. Rerum voluptatibus perferendis expedita tempore nulla provident.

Illum sit sit doloribus est. Asperiores qui et et veniam. Vel quas recusandae repellat vero ad sit qui. Et culpa distinctio quo at eligendi facere sunt.

Always looking to learn something new.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 05 98.3%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (44) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (78) $151
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
DrApeman's picture
DrApeman
98.9
8
dosk17's picture
dosk17
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”