The Morgan Stanley Banker and the $5m Cab Ride

NYC Taxi Close Up

This could end up being the most expensive cab ride in history.

Connecticut prosecutors decided two months ago that they would not pursue charges against a top Morgan Stanley banker accused of stabbing a cabby in a drunken, racist rage over a fare from Manhattan.

Jennings had originally been charged with assault, theft of service and intimidation based on race or bigotry after the December 2011 incident.

The Wall Street Journal reports that Jennings was fired by Morgan Stanley just two weeks before the decision was made to drop the charges. A brief letter to him didn't go into much detail, but Morgan Stanley officials have said Jennings breached the securities firm's 22-page code of conduct, according to people familiar with the matter.

Now the banker is in a tug of war over around $5m in deferred compensation that Jennings accumulated during his 19-year career at the firm.

Officials at Morgan Stanley believe the firm owes him nothing, citing 'clawback' provisions that allow the company to withhold or seize pay from employees who hurt Morgan Stanley.

'The issue is not Mr. Jennings' conduct," said a spokesman for the former Morgan Stanley banker. 'The issue is Morgan Stanley's conduct. Morgan Stanley knew Mr. Jennings was victimized and still fired him and still kept his money'.

A Banker's Costly Cab Ride (subscriber content only)

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