Wisconsin residents have undoubtedly heard that one of the factors that experts have said contributed to the recession was a growing number of questionable loans being made by large banks. A credit audit specialist employed by Morgan Stanley began to notice that the lending standards at the institution were declining after 2004. Now, the whistleblower says that when he attempted to bring this to the attention of his superiors, he suffered a campaign of retaliation.
According to a recently filed lawsuit, the credit audit specialist conducted audits and informed his employer that the bank was taken more risks and quality controls seemed to be slipping. For instance, prior to 2004, Morgan Stanley only extended lines of credit to companies with credit rates that ranged from A to AAA. After 2004, more and more loans were being made to companies with credit ratings of B to BB+. The employee believed it was his duty to take this information to his employer.
The man then went on vacation. When he returned, he discovered that his superiors had demoted him. No information was reported as to what reason the man may have been given by Morgan Stanley regarding his demotion. The man claims that since that time, he has suffered from diabetes, depression and anxiety as a result of the retaliation he has been subjected to at work. The man is now on long-term disability leave, but is still an employee of Morgan Stanley.
Morgan Stanley claims that it reviewed the concerns brought to their attention by this whistleblower and found them to be without merit. There was no comment regarding the alleged retaliation the man claims to be subjected to by his employer. It will be up to the court to decide whether the man’s claims are true. There are laws that are designed to protect whistleblowers from retaliation or wrongful termination. When Wisconsin employers don’t adhere to those laws, they should be held accountable.
Source: Business Week, Morgan Stanley Employee Sues Over Whistleblowing Claims (1), Patricia Hurtado, Sept. 11, 2013