(October 26) – “Morgan Stanley Dean Witter & Co. fired a female executive who sparked a government probe into gender bias at the Wall Street firm, alleging that she vocally abused her immediate supervisor,” writes Charles Gasparino in today’s Wall Street Journal.

“The executive, Allison Schieffelin, a 39-year-old principal in the financial-services concern’s institutional-stock division, was fired Tuesday for ‘insubordination and inappropriate behavior,’ according to a Morgan Stanley spokesman.”

“Wayne Outten, Ms. Schieffelin’s lawyer, called the move retaliation for his client’s efforts to expose alleged gender bias at the firm. In November 1998, Ms. Schieffelin filed charges with the federal Equal Employment Opportunity Commission alleging that sex discrimination was behind the firm’s decision not to promote her to the position of managing director, a high-ranking post in Wall Street firms.”

“Wednesday, Ms. Schieffelin filed a supplemental charge of discrimination and retaliation as a result of the firing. Morgan Stanley called Ms. Schieffelin’s allegations connecting her firing with the discrimination suit ‘baseless and the product of a disgruntled former employee.’ “

“The unusual action comes amid heightened sensitivity surrounding allegations of sexual discrimination on Wall Street. The most highly publicized case involved a group of female employees in 1996 who brought to light the existence of a ‘boom boom room’ in the basement of a Smith Barney branch office, where women said they endured instances of verbal and physical harassment.”

“That case, which grew into broader allegations of harassment and discrimination, was settled in 1998 when Smith Barney, now the Salomon Smith Barney unit of New York financial-services giant Citigroup Inc., agreed to spend $15 million over four years on programs to improve its record in hiring and promoting women, among other things.”

“Morgan Stanley has denied the charges of Ms. Schieffelin in her bias case. In June, the EEOC issued a finding in which it said the firm engaged in a ‘pattern and practice of discrimination’ based on gender, adding that ‘there is reasonable cause’ to believe Morgan Stanley violated the civil rights of Ms. Schieffelin and possibly others.”