A spokeswoman for Morgan Stanley confirmed to the Daily News that Ford was sacked for "conduct inconsistent with our values and in violation of our policies".
The Huffington Post, which first reported the allegations, said the journalist accused Ford of forcibly grabbing her one evening after a business meeting, and then continuing to email her after the incident, leading her to ask that the contacts stop.
Harold Ford Jr., at a panel discussion in 2012.
At least one woman, who is not a Morgan Stanley employee but interacted with Ford in a professional capacity, was interviewed by Morgan Stanley's HR department as part of the investigation.
At the time Morgan Stanley announced the hire, The New York Times described Ford's role as a rainmaker of sorts: "Mr. Ford will be responsible for "building business opportunities" for clients, Morgan Stanley said".
Despite the woman claiming to have emails in which he apologized for the behavior, Ford Jr. denied her allegation without hesitation on Thursday.
"We are looking into the report about Harold Ford Jr.", the network said in a statement.
"I have never forcibly grabbed any woman or man in my life", he said, in a statement released by his spokesman, Davidson Goldin. Ford continued to contact her after the encounter until she wrote an email asking him to cease contact.
He added: "I support and have tremendous respect for the fearless women now speaking out in this important national dialogue. False claims like this undermine the real silence breakers", he said. His firing comes as dozens of other powerful men in media, politics and showbiz face an avalanche of sexual harassment allegations.
Ford regularly appears on MSNBC's "Morning Joe", where now-disgraced political reporter Mark Halperin was also a frequent guest.
Ford joined Morgan Stanley as a managing director in 2011.
Ford Jr. spent 10 years in Congress from 1997 to 2007, taking over the Tennessee district formerly held by his father. A representative for MSNBC wasn't immediately available for comment.