Morgan Stanley and American Finance Association Announce Douglas W. Diamond as Recipient of the 2012 Award for Excellence in Finance

Morgan Stanley (NYSE: MS) and the American Finance Association (AFA) are pleased to announce that Professor Douglas W. Diamond of the University of Chicago Booth School of Business is the recipient of the Morgan Stanley-AFA 2012 Award for Excellence in Finance and will donate the $200,000 cash grant he has received as part of the award to the Fama-Miller Center for Research in Finance at the University of Chicago Booth School of Business, and to the Foundation for the Advancement of Research in Financial Economics.

Diamond, who is the Merton H. Miller Distinguished Service Professor of Finance and a Richard N. Rosett Faculty Fellow at the University of Chicago Booth School of Business, specializes in the study of financial intermediaries, financial crises and liquidity. He also is a Research Associate at the National Bureau of Economic Research and a visiting scholar at the Federal Reserve Bank of Richmond.

"We’re delighted that the AFA selection committee has chosen Doug Diamond — whose research is as relevant to our industry as it is to academia — as the award recipient,” said Peter Carr, Managing Director and Global Head of Market Modeling at Morgan Stanley. "We’re equally pleased that Doug’s decision to contribute the award money to Fama-Miller and to FARFE will help both organizations continue their efforts to advance financial research. Given Morgan Stanley’s own deep commitment to thought leadership, we’re proud that the award will benefit the scholarly community.”

Added John Cochrane, Head of the AFA Selection Committee: "Doug Diamond has been at the center of the development of the modern theory of banking and financial intermediation. He has brought careful bottom-up economic analysis to all the issues that are at the center of our current – and historical – financial problems. These range from runs, liquidity, incentives, and commitment to capital structure choices. His work literally founded the field.”

The Morgan Stanley-American Finance Association Award for Excellence in Finance recognizes career achievements and leadership in financial economics research. It was established in 2007 and is announced bi-annually. Recipients of the prize may donate the cash gift to an institution of their choice to support financial research. In addition, Morgan Stanley awards a separate Ph.D. Prize for Excellence in Financial Markets each year to a doctoral student who has performed outstanding research in the fields of finance or financial economics. To learn more about this prize, please visit www.morganstanley.com/PrizeforExcellence.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, and investment management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 42 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

The American Finance Association is the premier academic organization devoted to the study and promotion of knowledge about financial economics. Founded in 1940, the AFA now has more than 10,000 members and publishes the world-renowned Journal of Finance. For further information about the AFA, please visit www.afajof.org.