You have to say, if you are, for example, Wells Fargo or CitigroupMorgan Stanley got it so well. It’s the Top of the trading stack And so I managed it It posted record quarterly profits at the height of the Coronavirus pandemic. Sure, there are files accidental Setbacks, Like prof $ 60 million fine To spoil the “shutdown” of wealth management data centers, whatever that means, however Jimmy Damon or Mike Corbat It can tell you (the latter if it is Still noticing, That is) things could be much worse.
However, CEO James Gorman Not one to be Satisfied with success Generally speaking, he prefers to run a completely different bank. Thus, having just achieved a long career ambition to buy, uh, Online retail brokerage, And the Employee stock work plan, Gorman Drop another 7 billion dollars To turn a Wall Street power broker with a white boot into a dossier Beautiful, safe and boring Few Main Street shop.
“We wanted to make sure that Morgan Stanley was stable in the waters during very difficult times,” said Gorman on Thursday in a call with analysts. “A decade ago, our asset management and wealth management business had bright spots in it, but it wasn’t big enough, and it wasn’t on a sufficient scale that it could provide real stability to the rest of the organization.”
Gorman hopes that increasing the size of this business further will persuade analysts to view his company as less like an investment bank and more like Charles Schwab, which despite its well-established reputation of trading at profits of up to 20 times, doubles the multiples of Morgan Stanley and Goldman. .
Gorman said that if Morgan Stanley’s multiplier rose midway to Schwab’s stock, the bank’s stock should equal twice its value today. The CEO acknowledged that such a change is challenging: “I hope it happens in my professional life, let alone mine.”
Morgan Stanley buys Eaton Vance for $ 7 billion [WSJ]
With $ 20 billion in deals this year, Morgan Stanley is pulling away from risky Wall Street [CNBC]
Morgan Stanley Arrangements [DealBook]
Morgan Stanley finds the money in the pillow [WSJ]
Morgan Stanley is fined $ 60 million if data center oversight fails [Bloomberg]