Morgan Stanley leads as Wall Street equities trading rebounds

James Gorman Interview Pic

Morgan Stanley and Goldman Sachs led Wall Street banks in posting a collective 42% increase in equities-trading revenue in the second quarter, the largest jump in more than three years.

Bloomberg News reports that Morgan Stanley posted $1.81bn of revenue from trading stocks and equity derivatives and providing prime-brokerage services, surpassing Goldman Sachs to top all rivals for the first time in at least two years.

Revenue in Citigroup’s business climbed the most, with a 68% jump from last year’s second quarter.

Equities-trading revenue at the largest global banks slid for a third straight year in 2012 as volume declined and investors pulled more than $300bn out of stock mutual funds, according to fund data from the Investment Company Institute and trading figures from Coalition Ltd.

Rising interest rates may push more investors from bonds into equities, as inflows into stock funds were positive during the first five months of this year, the ICI data show.

'If you look at equities performance by region and product, it was very strong', Morgan Stanley CEO James Gorman, 55, said in a Bloomberg Television interview Thursday with Erik Schatzker. 'It’s been a business that has been doing great for a long time, but it had an absolute blowout'.

Hit the link below to access the complete Bloomberg article:

Morgan Stanley Leads as Wall Street Equities Trading Rebounds

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