BofA Traders Have Perfect Quarter As Morgan Stanley Lags

Bank Of America Building

Bank of America’s traders posted gains every business day during the first quarter as Morgan Stanley’s lost money in eight sessions, double the rate a year earlier.

Bloomberg Bank of America generated more than $25m of positive revenue on 97% of trading days, compared with a 76% rate at Morgan Stanley, according to quarterly filings by the companies.

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.

Hit the link below to access the complete Bloomberg article:

BofA Traders Have Perfect Quarter as Morgan Stanley Lags

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