None of Morgan Stanley’s daily losses exceeded the firm’s so-called value-at-risk, an estimate of potential trading losses, its filing shows.
'If you look at our VAR, and our risk-taking, we’re keeping it balanced relative to the rest of the company', Bank of America CEO Brian Moynihan, 53, said in an April 17 conference call. 'We may not roar as much as some people might, because this is one of the many businesses we have and we drive it for the benefit of the investing customers and also the issuing customers'.
Bank of America’s slump in first-quarter trading revenue was surpassed only by Morgan Stanley’s among the five largest Wall Street banks. The decline at Morgan Stanley was driven by a 42% drop in fixed-income and commodities trading, excluding accounting charges tied to the firm’s own debt.
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