Morgan Stanley, a major New York-based investment bank and financial services company, announced a new hub based in Texas’ financial corridor: Dallas.
The establishment will be another brick in the wall of Dallas’ burgeoning financial services industry.
Gov. Greg Abbott announced the company’s decision, saying it is a $684 million capital investment that could create 3,800 jobs. The governor also announced that a Texas Enterprise Fund (TEF) grant totaling $43,849,500, paired with a Veteran Created Job Bonus of $40,000, was offered to the company.
“Opportunity’s address is now Y’all Street,” he said.
Abbott also stated about the company’s decision, “We welcome Morgan Stanley’s expanded investment in Texas, where the depth of talent and access to America’s rapidly expanding financial center attracts the world’s leading brands across industries.”
The TEF grant offered to the company is one of the largest in Texas history, according to reporting by the Dallas Business Journal.
The city offered the company a tax abatement on business equipment for the establishment equal to 90 percent of its value, along with an $18.5 million economic development grant.
According to a press release from Dallas Mayor Eric L. Johnson emailed to The Texan, the Dallas City Council approved the incentive agreement on June 24. The policy authorizes a 90 percent tax abatement on business equipment for five years in Phase 1 of the project and for 10 years in Phase 2, and includes an economic development grant “up to $18.5 million based on actual jobs created with the project.”
Johnson also stated the hub would bring in $1.3 billion in capital.
TEF grants are “deal-closing” grants awarded to companies seeking to establish institutions in Texas, but considering other states for their builds. The grants serve as a financial incentive for companies that would contribute “significant capital investment and new employment opportunities to the state’s economy,” according to the Texas Economic Development & Tourism Office.
Other recent TEF projects from Fiscal Year 2026–2027 include a major grant to Saronic Technologies in Brownsville of $80 million and an offering to Eli Lilly and Company Pharmaceuticals in Houston of $5.5 million.
The Veteran Created Job Bonus falls under Texas’ TEF and requires companies to be paid an additional $1,000 for each “job filled by a veteran during the first year of job creation.”
“Y’all Street” continues to expand its operations; the recent opening of the Texas Stock Exchange (TXSE) marked a leap forward in Dallas’ financial services industry. Last year, the New York Stock Exchange officially opened a Texas-based exchange and was joined by Nasdaq in attempts to compete with the TXSE.
Securities exchanges are not the only institutions flocking to North Texas’ friendly financial climate; Goldman Sachs is currently building its largest hub outside of New York City in Dallas.
Dallas officeholders commented on Morgan Stanley’s new Texas hub, with Johnson stating, “This investment reflects what we have worked hard to build in Dallas: a safe, business-friendly, opportunity-rich city.”
He was joined in celebration by Dallas County Judge Clay Lewis Jenkins, who called the investment a “transformative move” and said, “The financial world is taking notice of what we’re building here.”
Not all Texas officials were excited about the news, however, with several criticizing the tax abatement deal.
Democratic gubernatorial candidate and state Rep. Gina Hinojosa (D-McAllen) was critical of the business incentives given to the company, calling the move a “grift” on X and adding, “End corporate welfare and cut property taxes for Texas families.”
Republican state Rep. Brian Harrison (D-Midlothian) joined the criticism, adding, “Morgan Stanley does not need $44 MILLION of my constituents’ hard-earned money!!!!” Harrison represents part of Dallas in Texas House District 10.
U.S. Sen. Ted Cruz (R-TX) lauded the decision, emphasizing the investment of the company into the state.
“Low taxes. Sensible regulation. An incredible workforce. And a commitment to free enterprise. Morgan Stanley’s $1.2 billion investment in Dallas is the latest example. Texas will continue to welcome investment and job creation,” he wrote.