Morgan Stanley and JPMorgan Review Ties with Odey Asset Management Amid Sexual Assault Allegations

Fresh allegations against Crispin Odey concerning sexual assault against women have been published. JPMorgan Chase & Co JPM and Morgan Stanley MS started distancing themselves from the hedge fund manager.

Morgan Stanley has begun terminating its prime broking relationship with Odey, Financial Times reported citing people familiar with the situation.

According to the investigation, it was discovered that partners at Odey Asset Management knew about Crispin Odey's alleged mistreatment of women dating as far back as 2004. 

During that time, a receptionist named Jae-Ann Maher resigned and filed a legal complaint against the firm. In her resignation letter, she detailed instances of receiving unwanted and unrequested sexual attention from Mr. Crispin Odey.

Odey told Reuters on Thursday that Morgan Stanley's move was "a massively quick reaction to an allegation by the FT."

The Financial Times published an investigation into Odey's treatment of women over 25 years, including multiple allegations of sexual harassment or assault. 

A law firm representing Odey said he "strenuously disputed" the allegations.

Prime brokers offer a range of services to their hedge fund clients, including stock lending, leverage, and trade execution. They also link hedge funds with potential investors such as pension funds, foundations, and endowments. 

JPMorgan is also reviewing its prime broking relationship with Odey Asset Management in light of the allegations, according to two people familiar with the situation, FT noted.

Harriett Baldwin, a Conservative MP who chairs the Treasury select committee, said: "The Financial Times has published an important piece of journalism, and the range of women they have interviewed paints a troubling picture of an inappropriate work environment.

Price Action: MS shares are down 0.28% at $86.26 on the last check Thursday.

Image by Peggy und Marco Lachmann-Anke from Pixabay