Ford, a frequent guest on news and finance TV shows and a five term congressman from Tennessee's 9th district, denied wrongdoing in a statement emailed to Reuters by Ford's lawyer.
"This simply did not happen," Ford, who has worked at Morgan Stanley as a managing director since 2011, said in a statement. He also said in the statement that he "never forcibly grabbed any woman or man in my life."
Ford's lawyer, John Singer, said the firm has not explained the reason for Ford's termination. The Huffington Post reported news of Ford's departure earlier on Thursday, citing interviews with an unnamed woman who claimed Ford harassed her on a night several years ago.
Morgan Stanley spokeswoman Margaret Draper said Ford was let go for "conduct inconsistent with our values and in violation of our policies."
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, Susan Thomas, Toni Reinhold)