Morgan Stanley's Future Still Uncertain

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Morgan Stanley has taken aggressive action to bolster profit. Over the last year, the Wall Street firm has cut thousands of employees, sold costly assets and retooled major businesses.

The New York Times reports that those efforts worked. In the fourth quarter, Morgan Stanley reported earnings of $481m, in contrast to a loss of $275m in 2011. Profit was equally strong for the year.

But the path to future growth is less clear. While the financial firm can find other ways to cut costs, its core operations face significant challenges, from both internal and external forces. Reflecting those issues, revenue was flat last year, excluding charges related to its debt.

'They are doing everything they can to boost returns', said Glenn Schorr, an analyst at Nomura. 'But given the environment and the state of their franchise, they can only do so much'.

Investors are assessing the progress versus the prospects.

Hit the link below to access the complete New York Times article:

Despite Improving Profits, Morgan Stanley’s Path Is Uncertain

Morgan Stanley’s Profit Beats Estimates

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