Ford, a frequent guest on news and finance TV shows, served five terms in the U.S. House of Representatives for Tennessee’s 9th district before joining Morgan Stanley in 2011.
Morgan Stanley spokeswoman Margaret Draper said Ford was let go for “conduct inconsistent with our values and in violation of our policies”.
Ford did not immediately respond to requests for comment.
The news of Ford’s departure was first reported by the Huffington Post, which cited interviews with an unnamed woman who claimed Ford harassed her on a night several years ago.
The entertainment and media industries and Congress have grappled with how to address a string of harassment allegations against prominent men.
Democratic Senator Al Franken resigned on Thursday after a series of sexual misconduct allegations against him.
Reporting by Elizabeth Dilts and Kanishka Singh; Editing by Carmel Crimmins and Susan Thomas