A further restructure of fixed-income, commodity and currency business said needed.
Morgan Stanley needs to further restructure its fixed-income, commodity and currency (FICC) business to generate return on equity of more than 10%, brokerage J.P. Morgan Cazenove said.
Analyst Kian Abouhossein said Morgan Stanley's FICC division does not have the scale to generate adequate return on equity and downgraded the stock to 'neutral' from 'overweight.'
'Every dollar of freed up capital is more valuable to shareholders than being tied up in the low returns fixed income business.' Abouhossein said in a note to clients.
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