Morgan Stanley has said it has recently recruited seven financial advisors from Merrill Lynch Global Wealth Management.

Dean Crandall, Caleb Englehardt, Chris Rapier and Gregory Foster have joined Stanley's global wealth management group in Champaign, Illinois. The team, which managed $235 million in client assets at Merrill Lynch, now reports to Illinois Central Illinois complex manager Paul DiGiallonardo.

Meanwhile, Carroll Jackson and Andrew Stanco, who at Merrill managed $166 million in assets, joined Morgan Stanley’s San Antonio, Texas operation. They now report to complex manager Daniel Hughes.

Finally, Earl Cooler was hired by Morgan Stanley's Hilton Head Island, South Carolina office. Mr Cooler, who managed $182 million in assets at Merrill, now reports to branch manager Mike Sirgo.

In other developments, a hearing is due to begin today in which Merrill Lynch is suing Deutsche Bank for $100 million in damages over its hire of Eric Heaton, Merrill’s former treasurer, and a number of other bankers.

Merrill's New York Supreme Court lawsuit claims that Mr Heaton - who resigned at the beginning of February - failed to adhere to his required notice period, and violated a non-compete clause which restricted him from joining another bank until February 2010.

Merrill’s complaint also refers to 11 other staff in addition to Mr Heaton, all of whom resigned on the same day.

Merrill’s filing said: “It is readily apparent that Deutsche Bank conspired with one or more of Merrill Lynch’s departing employees.”

Among the hires made by Deutsche was Alex Heaton’s brother, David Heaton, previously Merrill’s head of global asset management investment banking.

Merrill also claims that Deutsche misappropriated trade secrets through its hire of Eric Heaton, including information about its “business operations, liquidity, funding sources, clients and corporate strategies.”

Deutsche Bank, meanwhile, has agreed to put off Eric Heaton’s hire for 90 days until a judgement has been reached.