Here’s a followup to our post about the New York Times’ 4th quarter loss of $648 million, as Pinch Sulzberger responds to a Morgan Stanley executive’s attempt to make the Times more profitable—by pulling the Times’ assets from the bank: Fund manager costs Morgan Stanley Sulzberger money. (Hat tip: cbinflux.)

NEW YORK (Fortune) — Arthur Sulzberger Jr. survived the Jayson Blair scandal and Judith Miller’s jailing, but as proxy season beckons, the publisher and chairman of The New York Times faces a new challenge. This one is from Hassan Elmasry, a London- based managing director of Morgan Stanley Investment Management who has been trying to incite a shareholder revolt against Sulzberger.

Unfortunately for Morgan Stanley CEO John Mack, Elmasry’s campaign is turning into a high-priced headache.

Fortune has learned from a New York Times source and others close to the matter that the Ochs-Sulzberger family recently put in a request to pull the majority of its assets from the bank. (Morgan Stanley had been the longtime custodian of the family’s assets, including its stake in the Times company - which, based on recent share prices, is worth close to $640 million.) Elmasry is in charge of Morgan Stanley’s American and Global Franchise Strategies Portfolio, an $11.5 billion investment fund that owns about 7.6 percent of the Times’ nonvoting shares. The stock, now around $24, is down nearly 40 percent over the past two years. His response: a proposal that the company eliminate its dual shareholder structure, which he believes fails to provide adequate oversight of management.