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Morgan Stanley CEO James Gorman plans to retire by May 2024, leaving big shoes to fill. AdvertisementAdvertisementSuccession has traditionally been a bloody sport on Wall Street with the losers leaving and taking their lieutenants with them. Morgan Stanley CEO James Gorman, who plans to retire by May 2024, wants the buck the trend so the bank can hold onto all three candidates. "Wall Street has had a history of that not happening," said Gorman in a July earnings call. With Morgan Stanley at the top of its game, breaking up this well-oiled team could be disastrous.
Persons: Morgan Stanley, James Gorman, Ted Pick, Andy Saperstein, Dan Simkowitz, , Gorman, Morgan, Ted, He's, Tony James, Morgan Stanley's, Pick, Simkowitz, Dodd, Frank, Fannie Mae, Freddie Mac, Dan, Andy Saperstein Saperstein, Merrill Lynch, Bloomberg, Hayley Cuccinello Organizations: Service, Archegos Capital Management, Washington , D.C, Federal Reserve, Treasury, General Motors, AIG, Citigroup, McKinsey, Staten, Disney, Hamptons Locations: Washington ,, hcuccinello@insider.com
Banks’ wealth-management heyday may have passed
  + stars: | 2023-10-18 | by ( Liam Proud | ) www.reuters.com   time to read: +8 min
For wealth managers, that will make revenue growth much harder to come by, shifting the focus to controlling expenses. LOSING ITS SPARKLEIn Wall Street parlance, wealth management is a capital-light business. Little wonder Morgan Stanley boss James Gorman focused on wealth management after taking charge in 2010. The good news for UBS and Morgan Stanley is that they are better placed than most to handle these pressures. The bank’s wealth-management business generated a 35% ROTE, while the division that houses investment banking and trading managed just 8%.
Persons: UBS –, Morgan Stanley’s, Morgan Stanley, James Gorman, Sergio Ermotti, Goldman Sachs, Italy’s, Iqbal Khan, Morgan Stanley’s Andy Saperstein, Peter Thal Larsen, Sharon Lam, Oliver Taslic Organizations: Reuters, Wealth, UBS, Credit Suisse, HSBC, HK, Lloyds Banking Group, Revenue, Treasury, Big, Thomson Locations: Swiss, United States, Americas, Switzerland, Britain’s St, James’s
Morgan Stanley CEO James Gorman plans to retire by May 2024. "Cross-pollinating key leaders across our major businesses further knits the Morgan Stanley culture," Gorman wrote in a memo at the time. Morgan Stanley, which was the lead underwriter, had to step in to prop up the stock. In 2010, Morgan Stanley was picked as one of two lead underwriters — the other being JPMorgan — for the IPO of General Motors. With Morgan Stanley at the top of its game, breaking up this well-oiled team could be disastrous.
Persons: Morgan Stanley, James Gorman, Ted Pick, Andy Saperstein, Dan Simkowitz, He's, Simkowitz, Eaton Vance, Pick, Morgan, Getty, Dan, doesn't, Gorman, Morgan Stanley's, Saperstein, executive's protégé, Andy, Alex, Brown, Ted, she'd, Simkowitz's, Dean Witter Reynolds, Eaton, Calvert, Ruth Porat, Bob Scully, Fannie Mae, Freddie Mac, Will Dotson, Dan Akerson, TIMOTHY A, CLARY, Erik Gordon, Dodd, Frank, David Bieri, Gonzalo Marroquin, Patrick McMullan, Paul Taubman, Colm Kelleher, coheads, John Mack, Phil Purcell, Hayley Cuccinello Organizations: Disney, Harvard, McKinsey, Columbia Business School, Maccabiah Games, Team USA, Maccabi USA, Trenton Almgren, Davis, Lucent, Verizon, Mesa West Capital, JPMorgan, Calvert Research, Management, Facebook, Massachusetts Securities Division, Treasury, JPMorgan —, General Motors, Government Motors, General, New York Stock Exchange, Getty, University of Michigan's Ross School of Business, Citigroup, Virginia Tech, US Securities and Exchange Commission, United States Attorney's Office, Southern, of Locations: Bloomington , Indiana, Trenton, New York, Tokyo and Hong Kong, Boston, Washington, Switzerland, of New York, hcuccinello@insider.com
Stock futures were little changed on Monday night. Futures tied to the S&P 500 added 0.03%, while Nasdaq 100 futures gained 0.05%. During Monday's trading, the 30-stock Dow closed lower by 74.15 points, or 0.2%, while the S&P 500 inched higher by 0.01%. The S&P 500 alone lost nearly 5% in September. On the economic data front, investors will be watching the Job Openings and Labor Turnover Survey for August, due Tuesday morning.
Persons: Stocks, Richard Saperstein, Dow Jones Organizations: New York Stock Exchange, Stock, Nasdaq, Dow Jones Industrial, Dow, Treasury, Investors, Treasury Partners, Labor, Survey Locations: Washington
Morgan Stanley has officially kicked off the generative AI era on Wall Street. "Financial advisors will always be the center of Morgan Stanley wealth management's universe," Morgan Stanley co-President Andy Saperstein said in the memo. Competitors including Goldman Sachs and JPMorgan Chase have announced projects based on generative AI technology. But Morgan Stanley is the first major Wall Street firm to put a bespoke solution based on GPT-4 in employees' hands, according to Jeff McMillan, head of analytics, data and innovation at Morgan Stanley wealth management. Called the AI @ Morgan Stanley Assistant, the tool gives financial advisors speedy access to the bank's "intellectual capital," a database of about 100,000 research reports and documents, McMillan said in a recent interview.
Persons: Morgan Stanley, Andy Saperstein, Goldman Sachs, JPMorgan Chase, Jeff McMillan, McMillan Organizations: CNBC, JPMorgan, Morgan
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThere's great opportunity in the bond market, says Treasury Partners' Rich SapersteinRich Saperstein, Treasury Partners, joins 'Closing Bell' to discuss why he believes investors expectations in the market are too optimistic.
Persons: Rich Saperstein Rich Saperstein Organizations: Partners, Treasury Partners
The logo for Morgan Stanley is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsNEW YORK, Sept 7 (Reuters) - Wealthy clients going to a Morgan Stanley banker to discuss their investments may soon have a different sort of experience: having a chatbot listen to their conversation. They signed a deal last summer in which Morgan Stanley has preferred access in product development for wealth management. WEALTH RACEThe AI initiative is part of Morgan Stanley's strategy to drive its wealth division, where net revenue surged 16% to a record in the second quarter and new client assets grew $90 billion. Morgan Stanley is not alone in its AI efforts.
Persons: Morgan Stanley, Andrew Kelly, Sal Cucchiara, Morgan Stanley's, Cucchiara, Andy Saperstein, Sam Altman, Boris Power, OpenAI, they'll, Morgan, James Gorman, JPMorgan Chase, Teresa Heitsenrether, Erica, Nick Reed, Michael Abbott, Abbott, Tatiana Bautzer, Lananh Nguyen, Megan Davies, Nick Zieminski Organizations: New York Stock Exchange, REUTERS, Bankers, Saperstein, Wall, JPMorgan, Rival Bank of America's, OpenAI, Microsoft, Accenture, Thomson Locations: Manhattan , New York City, U.S, California, New York
The pros share their expectations and tips for how investors can trade in the month ahead. The volatility isn't over The "potential bite" of aggressive Fed policy could lead to more volatility, said Richard Saperstein, chief investment officer at investment firm Treasury Partners, in a Tuesday note. Avoid tech — but not completely Avoid mega-cap tech stocks such as the "Magnificent Seven" now, the pros said, referring to Apple , Amazon , Alphabet , Meta , Microsoft , Nvidia and Tesla — tech stocks that have made massive gains this year. "Big tech stocks have run and valuations are richer than they have been. Dave Sekera, chief U.S. market strategist at Morningstar, said on Thursday that not all tech stocks are overvalued.
Persons: Richard Saperstein, Ben Kirby, CNBC's, Carol Schleif, George Ball, Sanders Morris Harris, Schleif, Ball, it's, Dave Sekera, Kirby, Thornburg, Morgan Stanley, Andrew Slimmon Organizations: U.S . Federal Reserve, Treasury Partners, Thornburg Investment Management, BMO Family Office, Apple, Microsoft, Nvidia, Tesla, Big Tech, Morningstar, Autodesk, Software, Teladoc, CNBC, CME, Hyatt Hotels, Hotels, Resorts, Hilton Hotels, Morgan, Morgan Stanley Investment, United Rentals Locations: U.S, China, Argentine
Why tiny homes could be a big deal
  + stars: | 2023-08-06 | by ( Matt Turner | ) www.businessinsider.com   time to read: +6 min
It's easy to look at these tiny homes as undersized gimmicks, but there are real use cases. Others are leaning on tiny homes to house homeless veterans. Denver changed its zoning laws to make ADU construction easier, allowing two-story units in some parts of the city. Tiny homes won't fix that, but innovation in zoning and construction, taken with recent data pointing to a surge in residential construction, offer reasons for hope. Why tiny homes could be a big dealThis first appeared in the Insider Today newsletter.
Persons: Joyce Higashi, Katie Sandoval, Clark, Maggie, John Randolph, crumbles Karl Maasdam, Lawrence D, Thornton, Rebecca Zisser, Francesca Gino, Gino, she's, Read, Morgan Stanley, Arantza Pena Popo, Who's, James Gorman, Ted Pick, Morgan Stanley copresident, Insider's Hayley Cuccinello, Pick, Andy Saperstein, Ted Pick Big, Tyler Le, Brad Setser, Tess Turner, Stack, coders, — Jasmine Hyman, Doc Martens, Matt Turner, Hallam Bullock, Lisa Ryan Organizations: Service, Harvard, Big Pharma Locations: Wall, Silicon, California, San Jose, New Hampshire, Denver, Austin's, New York City
Morgan Stanley's hard-charging trading boss Ted Pick is the frontrunner to succeed CEO James Gorman. Morgan Stanley veteran Ted Pick is in the running to succeed chief executive James Gorman. Though Wall Street has dressed down over the last few years, he sticks to his suits and Hermès ties. While Morgan Stanley currently trades at a premium among its Wall Street peers, but its enviable success isn't thanks to Pick. He's a lot more like John Mack than James Gorman in terms of style," an ex-managing director said, referring to Gorman's sharp-elbowed predecessor.
Persons: Morgan Stanley's, Ted Pick, James Gorman, Morgan Stanley, Pick, Gucci loafers, Blackstone, Tony James, Morgan, it's, Andy Saperstein, Dan Simkowitz, Gorman, John Mack, Bill Parcells, Ted Organizations: Archegos Capital Management, NFL
Employees knew they were getting promoted if Pick told them to wear a tie the following day, an ex-managing director recalled. While Morgan Stanley currently trades at a premium among its Wall Street peers, its enviable success isn't thanks to Pick. Succession has traditionally been a bloody sport on Wall Street, and Morgan Stanley is no exception. Gonzalo Marroquin/Patrick McMullan via Getty Images Show less Morgan Stanley investment management head and dark horse in the race for CEO, Dan Simkowitz. Despite enjoying the stock price gains under Gorman's reign, plenty of longtime employees want another dyed-in-the-wool Morgan Stanley loyalist, according to a former senior executive.
Persons: Morgan Stanley, Ted Pick, Pick, Gucci loafers, Blackstone, Tony James, Morgan, James Gorman, Gorman, Andy Saperstein, Dan Simkowitz, John Mack, Ted, James, Phil Purcell, Mack, Purcell, Merrill Lynch, Paul Taubman, Colm Kelleher, coheads, Gonzalo Marroquin, Patrick McMullan, Saperstein, Euromoney, Parker Gilbert, He's, John, cohead, Bolu, Goldman Sachs, Pablo, tony, Betsey Kittenplan, Smith Barney, James cochairs, Jim Breyer, Anna Wintour, John Mack pranking Pick, John Waldron, Goldman, I'm, Howard Marks, Bill Parcells, atta, Brian Moynihan, aren't, David Solomon, Jamie Dimon's, Eaton Vance, he's, you've, Richard Drew, Organizations: Employees, Archegos Capital Management, Blackstone, McKinsey, Getty, Middlebury College, China Construction Bank, Harvard Business School, Mitsubishi, Wall, Autonomous Research, Anguilla, Agricultural Bank of China, Capital Management, Metropolitan Museum of Art, Vogue, New York Rangers, Oaktree Capital Management, Bloomberg, Staten, Disney, JPMorgan, Trade, AP Locations: China, Beijing, Manhattan, New York City, Caracas, Venezuela, Brookville, tony Long
US stocks rose higher on Friday as the Fed's favorite inflation gauge cooled to a two-year low. PCE inflation rose just 0.2% month-over-month in June, in line with economists' expectations. The Dow and S&P 500 are on track to close off their third straight winning week. The Personal Consumption Expenditures index, the Federal Reserve's preferred inflation measure, rose just 0.2% in June, in-line with economists' estimates. Commentators point out that headline inflation remains well-above the Fed's 2% long-run target.
Persons: Richard Saperstein, Saperstein Organizations: Dow, Service, Dow Jones Industrial, Federal, Fed, Treasury Partners Locations: Wall, Silicon, decelerate
July 18 (Reuters) - Morgan Stanley's profit beat estimates as growth in its wealth management business offset lower trading revenue in the second quarter, and executives expressed optimism about the economic environment. Morgan Stanley (MS.N) shares rose more than 6%, shrugging off the 14% drop in profits. Excluding one-off items, Morgan Stanley earned $1.24 a share on revenue of $13.46 billion, comfortably beating estimates of $1.15 a share on $13.08 billion revenue, according to data from Refinitiv IBES. Still, "we expect investment banking to lead the recovery in the next quarter," she said. The Wall Street giant followed rivals including JPMorgan Chase and Citigroup in reporting tepid trading results.
Persons: Morgan, Morgan Stanley, James Gorman, Brennan Hawken‎, Sharon Yeshaya, Morgan Stanley's, James Shanahan, Edward Jones, Gorman, Ted Pick, Andy Saperstein, Dan Simkowitz, Tatiana Bautzer, Mehnaz Yasmin, Niket, Lananh Nguyen, Arun Koyyur, Louise Heavens, Nick Zieminski Organizations: UBS, JPMorgan Chase, Citigroup, Bank of America, Reuters, Thomson Locations: New York, Bengaluru
Morgan Stanley profit drops 18% as deal drought persists
  + stars: | 2023-07-18 | by ( ) www.reuters.com   time to read: +1 min
July 18 (Reuters) - Morgan Stanley's (MS.N) profit slipped 18% in the second quarter as Wall Street's deal-making drought stunted revenue from investment banking. The bank's revenue from asset management slipped 2%. Morgan Stanley's revenue climbed 2% to $13.46 billion while expenses rose 8% to $10.48 billion. Profit applicable to common shareholders fell to $2.05 billion, or $1.24 per diluted share, the bank said on Tuesday. Shares of the investment bank were up 1.4% in premarket trading.
Persons: Morgan Stanley's, James Gorman, Morgan Stanley, Andy Saperstein, Tatiana Bautzer, Mehnaz Yasmin, Niket, Lananh Nguyen, Arun Koyyur Organizations: Thomson Locations: New York, Bengaluru
Mr. Schumer declined to comment. The dispute comes just a week after Mr. Adams got into a verbal altercation with a Jewish housing activist whose family fled the Holocaust, and whom Mr. Adams compared to a plantation owner. Many of the Jewish leaders now criticizing him are of a progressive bent, and Mr. Adams is not popular with progressives. A City Hall spokeswoman noted that within Orthodox ranks, there is a great deal of diversity — there are both modern Orthodox, and Jews associated with the Lubavitch movement, for example. “This esteemed council comprises a diverse assembly of Jewish men and women hailing from various religious and cultural backgrounds, including Chabad, Conservative, Hasidic, nondenominational, Modern Orthodox, Reform, Sephardic, and Yeshiva Orthodox affiliations,” said the spokeswoman for the mayor.
Persons: Beth Elohim, Chuck Schumer, Nadler, Ruth Messinger, David Saperstein, Schumer, Adams, Organizations: Jewish World Service, Manhattan, Hall, Lubavitch, Conservative, Yeshiva Orthodox Locations: Brooklyn, Manhattan, New York
Morgan Stanley co-presidents Ted Pick and Andy Saperstein are widely viewed as the front-runners for the top job, with Pick seen as having a slight edge, the person said. A Morgan Stanley spokesperson declined to comment, as did Gorman, Pick, Saperstein and Simkowitz when contacted directly. SUCCESSION PLANNINGSince taking the helm, Australian-born Gorman, 64, has transformed Morgan Stanley through a series of major deals into a wealth management powerhouse that aims to manage $10 trillion in assets. Pick, 54, heads Morgan Stanley's institutional securities group, overseeing areas including investment banking, equities and fixed income. Saperstein, 56, is in charge of the wealth management unit that has bolstered Morgan Stanley's profits in recent years.
Persons: Morgan Stanley's, James Gorman's, Gorman, Morgan Stanley, Ted Pick, Andy Saperstein, Pick, Dan Simkowitz, Morgan, Merrill Lynch, You've, you've, Peter Orszag, Kenneth Jacobs, JPMorgan Chase, Jamie Dimon, Brian Moynihan, Lananh Nguyen, Paritosh Bansal, Megan Davies, Jamie Freed Organizations: YORK, U.S . Securities, Exchange Commission, U.S, Attorney's, Southern, of, McKinsey, White House, JPMorgan, Bank of America, Thomson Locations: London, New York, of New York, Australian
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHedge the slowdown in equities with investments in bonds, says Treasury Partners' Richard SapersteinJosh Brown, Jenny Harrington and Richard Saperstein join 'Halftime Report' to discuss trends in commercial real estate, projections for a slowdown in the back half of the year, and finding opportunities in the bond market.
Persons: Richard Saperstein Josh Brown, Jenny Harrington, Richard Saperstein Organizations: Partners
Watch CNBC's investment committee discuss opportunities in bonds
  + stars: | 2023-06-27 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's investment committee discuss opportunities in bondsJosh Brown, Jenny Harrington and Richard Saperstein join 'Halftime Report' to discuss trends in commercial real estate, projections for a slowdown in the back half of the year, and finding opportunities in the bond market.
Persons: Josh Brown, Jenny Harrington, Richard Saperstein Organizations: Watch
LONDON, June 14 (Reuters) - Deutsche Bank (DBKGn.DE) has added three senior dealmakers to its team of bankers advising other financial institutions, such as insurance companies and lenders, according to a memo seen by Reuters on Wednesday and confirmed by a company spokesperson. It has hired Marie-Soazic Geffroy as global co-head of its Financial Institutions Group (FIG) from Perella Weinberg Partners (PWP.O). Based in Paris, she will lead the industry group alongside Jeff Cady, who is set to join the bank in New York from Citigroup (C.N). The bank has also appointed Chris Williams as FIG chairman for Europe, the Middle East and Africa (EMEA). Citigroup's Aaron Saperstein is also set to join Deutsche Bank in New York as head of diversified financials, covering speciality finance companies and financial technology lenders.
Persons: Marie, Soazic, Perella Weinberg, Jeff Cady, Chris Williams, Citigroup's Aaron Saperstein, Pablo Mayo Cerqueiro, Stefania Spezzati, Mark Potter Organizations: Deutsche Bank, Reuters, Group, Citigroup, Credit Suisse, Deutsche, Thomson Locations: Paris, New York, Europe, East, Africa
NEW YORK, June 2 (Reuters) - JPMorgan Chase & Co's (JPM.N) President and Chief Operating Officer Daniel Pinto said loan demand is declining at a time when regional and small banks are also tightening credit. JPMorgan's revenue for investment banking and trading are expected to decline 15% in the second quarter, Pinto said last month at the bank's annual investor day. Uncertainty and increased market volatility as central banks approach the end of their monetary tightening cycles have dented investment banking demand. Rival Goldman Sachs (GS.N) has said its dealmaking and trading revenue may slide by 25% in the second quarter, leading to job cuts. Bank of America Corp (BAC.N) expects investment banking fees and trading revenue to be broadly flat this quarter.
Persons: Daniel Pinto, Pinto, Goldman Sachs, Andy Saperstein, Morgan Stanley, Nupur Anand, Lananh Nguyen, David Gregorio Our Organizations: YORK, JPMorgan Chase, Federal Reserve, JPMorgan, Bank of America Corp, Thomson Locations: New York
[1/2] John Waldron, president and Chief Operating Officer of Goldman Sachs, speaks during the Goldman Sachs Investor Day at Goldman Sachs Headquarters in New York City, U.S., February 28, 2023. REUTERS/Brendan McDermidNEW YORK, June 1 (Reuters) - Goldman Sachs Group Inc (GS.N) plans more workforce reductions as the difficult economic environment weighs on dealmaking, the bank's president said on Thursday. "The macro backdrop is extraordinarily challenging," Goldman's President and Chief Operating Officer John Waldron told investors at a conference, without specifying the scale of the layoffs. The firm is expected to cut fewer than 250 jobs in the coming weeks, a source familiar with the matter told Reuters in May. He also said he expects a 25% fall in market revenue for both equities and fixed income in the current quarter from a year earlier.
Persons: John Waldron, Goldman Sachs, Brendan McDermid, Waldron, Andy Saperstein, Morgan Stanley, Daniel Pinto, Saeed Azhar, Niket, Nick Zieminski Organizations: Goldman, REUTERS, Goldman Sachs Group Inc, Reuters, Wall Street, JPMorgan Chase, Thomson Locations: New York City, U.S, Wall
Wall Street's succession summer
  + stars: | 2023-05-30 | by ( Kaja Whitehouse | ) www.businessinsider.com   time to read: +5 min
But first, it's the summer of succession — and no, we're not talking about the TV show. Wall Street CEOs pretend that succession planning is another chore, like hashing out the annual budget or organizing an earnings call. But behind the boring press announcing their succession plans is often a story of intrigue and drama. And then, of course, there's Jamie Dimon, Wall Street's longest-serving CEO. Earlier this week, Insider highlighted 17 young analysts poised to shine.
May 21 (Reuters) - The absence of women from the slate of potential Morgan Stanley (MS.N) CEO successors underscores the importance of cultivating and keeping diverse talent, corporate governance experts say. Morgan Stanley co-presidents Ted Pick and Andy Saperstein, and head of investment management Dan Simkowitz, are the front-runners to succeed James Gorman, who said on Friday he plans to step down as chief executive within a year. The most recent U.S. workforce diversity data comprehensively reported by the Wall Street banks shows women were less represented in leadership positions at Morgan Stanley than at other top U.S. banks as of 2021. A Morgan Stanley representative declined to comment. To be sure, Morgan Stanley has several women in top roles, including Chief Financial Officer Sharon Yeshaya.
Under his leadership, Morgan Stanley became a wealth management powerhouse that aims to manage $10 trillion in assets. Morgan Stanley bought money manager Eaton Vance, online broker E*Trade, and stock-plan manager Solium Capital under Gorman's leadership. He was also the key architect behind Morgan Stanley's purchase of Smith Barney, a brokerage and investment adviser, in 2009. The acquisitions have made Morgan Stanley's U.S. wealth business an "asset gathering monster," and a "killer machine," he said on an earnings conference call last month. "This structure will ensure the continued stability of Morgan Stanley, while at the same time positioning it for a decade of exciting growth under new leadership."
Morgan Stanley co-presidents Ted Pick and Andy Saperstein, and head of investment management Dan Simkowitz, are widely seen as contenders for the top job. Morgan Stanley shares were little changed in early trading, down 0.9%. The less volatile business of wealth management accounted for 45% of firm's revenue in the first quarter. Morgan Stanley's first-quarter profit beat expectations as rising revenue from wealth management offset declines in investment banking and trading. Simkowitz, the eldest of the three at 58, is head of investment management at Morgan Stanley and co-head of the firm's strategy and execution.
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