NEW YORK Reuters – Morgan Stanley has asked an Idaho court to prohibit three brokers it says generated over half the revenue at its Coeur dAlene branch from contacting former colleagues about joining them at a Stifel Nicolaus & Co. office they have set up in the same cityThe offices producing branch manager, Michael Armon, and two associates resigned from Morgan Stanley on May 9, causing “upset, anxiety, insecurity, uneasiness and concern” at “a relatively small office” that had only six advisers, according to a May 17 filing in U.S. District Court for the District of Idaho by the brokerage. The brokers who left oversaw about $229 million of client assets and generated about $1.7 million of revenue annually, the filing said.Morgan Stanley seeks return of all company and client documents from the advisers and asked the court to ban them from destroying any records or documents that could be used in an arbitration proceeding that is being arranged. It also asked to enjoin them from contacting the three brokers and their support staff still working at the Morgan Stanley office.Brokerage firms fight fiercely to retain and recruit top brokers and requests for restraining orders are common. The Idaho case, however, brings up some unusual issues, lawyers said. Most significantly, it could help distinguish between illegal “raiding” of a branch and acceptable recruiting practices that are largely orchestrated by branch managers.

via Morgan Stanley sues high-producing brokers for jump to Stifel – chicagotribune.com.