Three leave Morgan Stanley in aftermath of controversial email

LOSSES & LAWSUITS

Economist Andy Xie resigned for "personal reasons". According to numerous press reports, his departure was linked to an email that included recollections of a dinner party he attended at which Singapore prime minister Lee Hsien Loong was present.

According to press accounts, Xie wrote: "People fawned on him like a prince." He is also said to have branded the Association of South East Asian Nations a "failure" for not lifting economic growth over the past 10 years, and to have scorned Singapore's claim to have overseen an economic miracle.

Both Xie – who has expressed strong opinions on a variety of subjects in his research reports – and Morgan Stanley have said in statements that the email was intended for internal consumption only. However, the email was leaked.

Days after Xie's departure, two other Morgan Stanley bankers also left. The resignations of Celicia Ong, a Singapore-based equity saleswoman, and Hani Abuali, a securities trader in Hong Kong, were said to be related to the forwarding of the email outside the small group of intended recipients.

Temasek Holdings, the Singapore government's investment arm, is a Morgan Stanley client.