JP Morgan and Morgan Stanley review prime broking ties with Odey Asset Management
JPMorgan and Morgan Stanley are reviewing their prime broking relationships with Odey Asset Management after allegations of sexual misconduct and bullying by Crispin Odey reported by the Financial Times and Tortoise Media on Thursday, sources familiar with the matter said.
The FT reported that 13 women alleged Odey had sexually assaulted or harassed them over a 25-year period.
“This is a rehash of an old article and none of the allegations have been stood up in a courtroom or an investigation,” Crispin Odey told Reuters by phone.
Odey was cleared of indecent assault charges by a British court in 2021.
Referring to Morgan Stanley’s plans to cut back its prime broking relationship with Odey Asset Management, he said: “That is a massively quick reaction to an allegation by the FT.”
The FT was also the first to report news of Morgan Stanley’s decision, which a source confirmed to Reuters independently.
A source familiar with the matter told Reuters JPMorgan was also reviewing its relationship with Odey Asset Management.
Prime brokers lend hedge funds the money they need in order to facilitate investments.
A source at one of the banks said the allegations of misconduct at Odey Asset Management conflicted with their standards.
Morgan Stanley and JPMorgan declined to comment.
Odey Asset Management did not respond immediately to a phone call and email requesting comment.
Crispin Odey, one of Britain’s best-known hedge fund managers and a leading backer of Brexit, came to prominence during the 2008 financial crisis when he made a fortune shorting banking shares.
Reporting by Reuters