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Oct 17, 2014

Analysis – Morgan Stanley, armed with cash from fixed income dump, goes shopping

NEW YORK (Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research), which has spent three years throwing out bad apples from its fixed income trading portfolio, now wants to put the freed up money into businesses that bear healthier fruit.

It is reinvesting capital previously held against unprofitable trades into areas like municipal bonds, credit and securitisation, where it sees opportunities for boosting profit, senior executives at the bank said on Friday.

Oct 17, 2014

Morgan Stanley, armed with cash from fixed income dump, goes shopping

NEW YORK (Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), which has spent three years throwing out bad apples from its fixed income trading portfolio, now wants to put the freed up money into businesses that bear healthier fruit.

It is reinvesting capital previously held against unprofitable trades into areas like municipal bonds, credit and securitization, where it sees opportunities for boosting profit, senior executives at the bank said on Friday.

Oct 17, 2014

Morgan Stanley profit jumps as trading activity rebounds

By Tanya Agrawal and Lauren Tara LaCapra

(Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research) reported an 87 percent rise in third-quarter earnings as the Wall Street bank’s trading, investment banking and wealth management businesses benefited from increased client activity and a hot equity market.

The bank’s shares were up 2.7 percent at $33.40 (20.93 British pounds) in morning trading on Friday as both profit and revenue handily beat analysts’ average forecast.

Oct 17, 2014

Morgan Stanley profit jumps 87 percent as trading activity rebounds

By Tanya Agrawal and Lauren Tara LaCapra

(Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) reported an 87 percent rise in third-quarter earnings on Friday as the Wall Street bank’s trading, investment banking and wealth management businesses benefited from increased client activity and a hot equity market.

Morgan Stanley’s shares rose 4 percent to $33.85 in premarket trading as both profit and revenue handily beat market expectations.

Oct 17, 2014

Goldman curbs bankers’ compensation even as revenue surges

NEW YORK, Oct 17 (Reuters) – Top Goldman Sachs Group Inc
executives are determined to keep compensation costs
under control. And that means even when the bank’s revenue
spikes higher, bankers’ bonuses won’t.

On Thursday, Goldman reported a 25 percent increase in
quarterly revenue, but the money it set aside for compensation
and benefits rose only 18 percent from the same period a year
earlier. The amount of money it has set aside for compensation
is more or less unchanged, as is the average compensation per
employee, at around $320,000 for the first nine months of the
year.

Oct 16, 2014

Goldman Sachs profit surges as bond trading picks up

By Lauren Tara LaCapra and Tanya Agrawal

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) reported a 50 percent jump in third-quarter net profit on Thursday as last month’s sudden pickup in bond market activity helped to boost trading revenue.

Net income attributable to common shareholders rose to $2.14 billion, or $4.57 per share, from $1.43 billion, or $2.88 per share, a year earlier.

Oct 9, 2014

Morgan Stanley uses client cash to chase private equity profits

By Lauren Tara LaCapra and Greg Roumeliotis

(Reuters) – Morgan Stanley is embracing the financial reforms intended to curb its animal spirits to generate bigger profits.

Unlike most of its rivals, Morgan Stanley has been building its private equity business using structures that are subject to the Volcker rule, which restricts the amount of money a bank and its employees can contribute to such funds. This, in turn, limits their profit-sharing and, some would argue, their alignment with investors’ interests.

Oct 1, 2014
via Unstructured Finance

How Babel became Symphony

The idea for a communications platform went through several names before Symphony.

In late-2012, Goldman Sachs traders started to notice something unusual. News was sometimes breaking on social media faster than it was breaking on sophisticated information terminals that cost the bank millions of dollars each year.

Oct 1, 2014

Exclusive – Goldman leads investment by Wall Street in new communications platform

NEW YORK (Reuters) – After spending two years developing a wide-ranging communications tool for Wall Street, Goldman Sachs Group Inc says it has reached the perfect pitch.

    On Wednesday, Goldman and 13 partners plan to announce a $66 million investment in a new company called Symphony Communication Services Holdings LLC, according to a draft press release viewed by Reuters. The partners are all financial services firms, including major global banks and asset managers.

Oct 1, 2014

Goldman leads investment by Wall Street in new communications platform

NEW YORK, Oct 1 (Reuters) – After spending two years
developing a wide-ranging communications tool for Wall Street,
Goldman Sachs Group Inc says it has reached the perfect
pitch.

On Wednesday, Goldman and 13 partners plan to announce a $66
million investment in a new company called Symphony
Communication Services Holdings LLC, according to a draft press
release viewed by Reuters. The partners are all financial
services firms, including major global banks and asset managers.