Morgan Stanley Lost in Court, but perhaps Won on the Larger Level

Even though Charles Schwab & Co. Inc. just lost a public and nasty $15 million FINRA fight with Morgan Stanley over a raid of its financial advisors, it may have shown the ability to use a new weapon in its arsenal: intimidation.

During the battle, the San Francisco-based brokerage giant sent a clear message to would-be raiders and would-be breakaways internally that it will go to Merrill Lynch-style lengths to mete out retribution in the form of expensive and intensive legal wrangling, says Andrew Stoltmann, a Chicago securities attorney with Stoltmann Law Offices.

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