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Morgan Stanley claims trading victory over rival Goldman Sachs

Wednesday, July 19, 2017 - 01:15

Morgan Stanley beat Wall Street's profit expectations, reporting gains across most of its businesses and producing more trading revenue than rival Goldman Sachs.

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Morgan Stanley beat Wall Street's profit expectations and reported gains across most of its businesses. One dark spot, bond trading, fell four percent. That's still much less than at other banks, such as Goldman Sachs, which chalked up a forty percent drop. Good earnings gave a boost to Morgan Stanley's stock. Through Tuesday's close, it has risen about seven percent this year, outpacing the KBW Bank index. Olivia Oran covers the story for Reuters: (SOUNDBITE) OLIVIA ORAN, REUTERS CORRESPONDENT (ENGLISH) SAYING: "Morgan Stanley actually has a different fixed income footprint than some of the banks. In 2015, at the end of the year, they had dismal performance, and they cut 25 percent of their trading staff and they really reduced their amount of assets they dedicate to trading. So, less capital-intensive business, fewer people. And it's paid off really well. They changed their leadership, and they still have been able to, for the last two quarter to produce results exceeding that of Goldman, which has more people, and more products, bigger footprint." After financial crisis, Morgan Stanley's chief executive officer James Gorman shifted the bank's focus to wealth management. It's much more predictable business than trading. And it now brings about fifty percent of Morgan Stanley's revenue.

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Morgan Stanley claims trading victory over rival Goldman Sachs

Wednesday, July 19, 2017 - 01:15