Democratic former congressman Harold Ford Jr. was fired from Morgan Stanley for "conduct inconsistent with our values and in violation of our policies," a spokesperson told CNBC Thursday.
The firing came as the former Tennessee lawmaker was facing allegations of misconduct, according to the Huffington Post, which first reported the firing.
A woman had accused him of harassment and intimidation, according to the report.
Ford denied the accusation and said he plans legal action against the accuser and his former employer.
Ford tweet: I will now be bringing legal action against the reporter who made these false claims about me as well as Morgan Stanley for improper termination.
"Morgan Stanley has still not told Harold directly of his termination," his attorney, John Singer, said in a statement Thursday.
The Huffington Post reported that Morgan Stanley was investigating interactions between Ford and a woman in a professional setting. She was not an employee of the bank.
Ford referred to the accuser as a "news reporter."
The woman told HuffPost that Ford grabbed her while in a Manhattan building, causing her the seek aid from a security guard.
"This simply did not happen," Ford said in a statement. "I have never forcibly grabbed any woman or man in my life."
The Huffington Post did not identify the accuser but said it had reviewed emails between her and Ford that confirmed the incident. The website also spoke with two people the woman had told about the incident.
One of the two spoke to the woman the night of the incident and described her as "distraught, shocked, and frightened," the Huffington Post said.
Singer said the firing "was a matter of convenience during a hyper-sensitive time and not based on real facts."
Ford said he is sympathetic to the many women who come forward recently about being victims of sexual harassment.
"I support and have tremendous respect for the brave women now speaking out in this important national dialogue," Ford said. "False claims like this undermine the real silence breakers."
In an interview with CNBC, Singer said Ford was notified through counsel that he had been fired.
"There are hundreds and hundreds of investment banking cases that we've handled and I can't recall an instance where the company didn't directly reach out" or offer a reason for the termination, Singer said.
"The inference to be drawn is that there is no reason, and of course we know that there is no reason," he said.
Ford, 47, was elected to Congress at age 26, representing his Tennessee district from 1996 to 2007. In 2006, he made an unsuccessful bid for the Senate, losing to Sen. Bob Corker.
Ford was appointed managing director of Morgan Stanley in 2011. The company said at the time that he would be responsible for "building business opportunities for clients" as well as managing relationships with corporate directors, senior executives, institutional investors and private clients.
He is a frequent television commentator and has appeared on NBC, MSNBC and CNBC.
Disclosure: NBCUniversal is the parent company of NBC, MSNBC and CNBC.