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Jan 18, 2014

Analysis: Morgan Stanley bets on smaller bond unit, defying skeptics

NEW YORK (Reuters) – In early 2011, Morgan Stanley Chief Executive James Gorman thought he had finally figured out how to rebuild the bank’s depleted bond trading business without taking too much risk.

He hired traders from rivals in areas where the bank was relatively weak, such as trading government debt, and exhorted his sales staff to gain new clients and win more trades from existing customers.

Jan 18, 2014

Morgan Stanley bets on smaller bond unit, defying skeptics

NEW YORK, Jan 18 (Reuters) – In early 2011, Morgan Stanley
Chief Executive James Gorman thought he had finally
figured out how to rebuild the bank’s depleted bond trading
business without taking too much risk.

He hired traders from rivals in areas where the bank was
relatively weak, such as trading government debt, and exhorted
his sales staff to gain new clients and win more trades from
existing customers.

Jan 17, 2014

Retail brokerage helps Morgan Stanley profit beats estimates

By Lauren Tara LaCapra and Tanya Agrawal

(Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research) posted stronger-than-expected fourth-quarter results, as its retail brokerage and asset management businesses won more assets from clients and benefited from rising stock markets.

The bank’s retail brokerage business, which manages money for wealthy clients, reached the company’s target for profit margins, and Morgan Stanley raised that forecast for the coming years. The bank’s shares rose 4.2 percent to $33.33, their highest level since November 2009, when the bank was recovering from the financial crisis.

Jan 17, 2014

Morgan Stanley advances target to cut risky assets

By Lauren Tara LaCapra and Tanya Agrawal

(Reuters) – Morgan Stanley rolled forward its plan to reduce its risky assets as the Wall Street bank focuses on generating a higher return on equity, a measure where it lags its rivals.

The bank, which reported a sharp fall in quarterly profit on Friday due to large legal bills, delivered an adjusted return on equity of 6 percent in 2013, far short of the 11 percent generated by Goldman Sachs & Co.

Jan 17, 2014

Insight: Goldman’s low-cost Utah bet buoys its bottom-line

NEW YORK (Reuters) – Goldman Sachs Group Inc has been quietly moving thousands of jobs from pricey places like New York and London to cheaper cities like Salt Lake City in recent years, and executives said on Thursday those efforts are finally starting to show up in the bank’s results.

Goldman posted a profit of $2.25 billion in the fourth quarter on Thursday, as lower compensation costs helped blunt some of the impact of weaker bond trading revenue.

Jan 17, 2014

Goldman’s low-cost Utah bet buoys its bottom-line

NEW YORK, Jan 17 (Reuters) – Goldman Sachs Group Inc
has been quietly moving thousands of jobs from pricey places
like New York and London to cheaper cities like Salt Lake City
in recent years, and executives said on Thursday those efforts
are finally starting to show up in the bank’s results.

Goldman posted a profit of $2.25 billion in the fourth
quarter on Thursday, as lower compensation costs helped blunt
some of the impact of weaker bond trading revenue.

Jan 16, 2014

Bond trading stings Goldman, Citi in fourth quarter

By Lauren Tara LaCapra and David Henry

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) and Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) were hit hard by a sharp fall in bond trading revenues in the fourth quarter, a stinging blow for two banks long seen as stalwarts of fixed income markets.

The two banks performed worse in fixed income than rivals JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and Bank of America Corp, (BAC.N: Quote, Profile, Research, Stock Buzz) showing that even as bond market trading volume suffers from falling prices, some banks will endure more pain than others.

Jan 16, 2014

Goldman Sachs profit hit by lower bond trading revenue

By Anil D‘Silva and Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) reported a 21 percent drop in quarterly profit as revenue from fixed-income trading fell in what Chief Executive Lloyd C. Blankfein described as “a somewhat challenging environment.”

Net income applicable to common shareholders fell to $2.25 billion, or $4.60 per share, in the fourth quarter from $2.83 billion, or $5.60 per share, in the same quarter of 2012, the Wall Street bank said on Thursday.

Jan 6, 2014

Morgan Stanley rates trading head leaves amid strategic shift

NEW YORK (Reuters) – Morgan Stanley’s (MS.N: Quote, Profile, Research, Stock Buzz) former global head of rates trading, Edward Glenn Hadden, said he has left the bank to pursue another opportunity after a change in strategic direction.

In an interview on Monday, Hadden said he decided to leave after Morgan Stanley’s management changed plans for the business, and after his former boss, Ken de Regt, left in May.

Dec 4, 2013

Morgan Stanley amps up lending to boost wealth margins

NEW YORK (Reuters) – Just a few years ago, Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) lacked the expertise, infrastructure or desire to do a lot of lending, but today it is making a big push into loans to bridge a profit gap with rivals.

Morgan Stanley’s brokerage business historically focused on helping clients invest in stocks and bonds, leaving lending to competitors like Citigroup (C.N: Quote, Profile, Research, Stock Buzz) with bigger retail banking operations.