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Better Have Season Tickets If You Want To Sell IT Equipment To Morgan Stanley

E-mails filed as evidence this week in a lawsuit against Morgan Stanley provide a rare glimpse into the inner workings of the IT department at one of the world's most powerful investment banks--Morgan Stanley. Among other things, the E-mails show that Morgan Stanley CTO Guy Chiarello routinely received premium sports tickets from vendors looking to do business with the firm. In one series of exchanges lasting several months in 2003, EMC global account manager Lennox Stuart arranged for Chiarello tickets to Yankees, Jets, and Celtics games and the U.S. Open. Question: In accepting, is Chiarello's behavior unethical, or is it just business as usual in the IT industry and on Wall Street? Read these excerpts from his correspondence with Stuart and let us know what you think.

From: Lennox Stuart, EMC
To: Guy Chiarello, Morgan Stanley
04/04/03
Subject: Yankee dinner 4/7
Guy--I stopped by your office...and dropped off the tickets to the Yankee's dinner Monday night...The cocktail hour starts at 6:30 and the dinner is at 7:30...Have a great weekend and we will see you and your son Monday night.

From: Lennox Stuart
To: Guy Chiarello
04/16/03
Subject: Re: Trip to EMC 2/24-4/25
Guy--I will work on the hotel. As for the Celtics, I do not believe the post season schedule has been set yet. I do however have a request in for the game if there is one that night.

From: Lennox Stuart
To: Guy Chiarello
06/04/03
Subject: Re: U.S. Open
Guys--EMC may be getting some tickets for the U.S. Open Tennis this year. Let me know if you [rest of message unclear].

From: Guy Chiarello
To: Lennox Stuart
06/05/03
Subject: Re: U.S. Open
I do as well. I have brought my daughters each year and it is a great event.

From: Lennox Stuart
To: Guy Chiarello
9/11/03
Subject: Jets Game!
Guy--Stopped by...to pass off the tickets...Enjoy the game!...By the way, I was wrong about the sideline passes for the game. No access. However with these seats you are almost there anyway!

From: Lennox Stuart
To: Guy Chiarello
10/08/03
Subject: Tickets for Yanks vs. Sox in Boston?
Guy--I have access to 2 tickets for this weekend's Yankees/Sox game in Boston. Let me know if you want them.

From: Guy Chiarello
To: Lennox Stuart
10/15/03
Subject: Re: Yankees-Boston-Game 7?
I am not going to be able to get home in time...so I am hoping that there is no game 7. Just get us squared away for the world series. Thx.

From: Lennox Stuart
To: Guy Chiarello
10/16/03
Re: Yankees-Boston-Game 7?
Horrible game last yesterday. When they win tonight we have you covered for the World Series!

So is all this above board? Can Chiarello be expected to perform an honest evaluation of EMC's technology under these circumstances? Can he be expected to act in the best interests of Morgan Stanley and its shareholders when making purchasing recommendations worth millions of dollars, constantly being wined and dined in this fashion? What do you think?

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