Morgan Stanley IT chief in potential ethics breach

The chief techology officer of Morgan Stanley reportedly used his IT budget to help win investment banking deals, and allegedly solicited sports tickets for himself in a potential violation of the US investment bank's in-house ethics code.

The New York Post reports that Guy Chiarello received tickets and services from IT vendors, and used the bank's IT budget to help win deals for the investment banking division, according to internal documents and emails obtained by the newspaper.

A spokesman for Morgan Stanley told the newspaper there was "no evidence that Chiarello's conduct warranted disciplinary action." Chiarello did not return calls to the newspaper.

Morgan Stanley declined to comment to Financial News.

Chiarello received emails from other executives at Morgan Stanley which intimated he should use the technology budget to reward the Morgan Stanley's investment banking clients.

Chiarello also accepted sports tickets and services from vendors, according to a lawsuit filed by former Morgan Stanley technology executive Arthur Riel against the banking group last week.

Morgan Stanley's code of ethics forbids executives to accept gifts or special favours from anyone or any company with a relationship with the bank. Riel said he reported Chiarello's ethical violations, but the bank declined to investigate.

Morgan Stanley said it fired Riel in September for violating rules over employee privacy.