James Gorman Looks At Today's Smoking Wreckage, Decides He Could Use A Smidge More MS In His Portfolio


Not only is Morgan Stanley gaining FICC market share, dominating tech IPOs, and not laying off scads of people, but its CEO thinks it's a buy:

James Gorman, chief executive officer of Morgan Stanley, purchased $2.06 million of stock in the firm as the shares touched their lowest level since March 2009.

Gorman bought 100,000 shares today at a weighted average price of $20.62, according to a filing with the U.S. Securities and Exchange Commission. The stock tumbled $1.32 on the New York Stock Exchange, or 6.3 percent, giving Gorman a $92,000 one-day loss on the transaction.

It's unusual for a bank CEO to buy stock, since they usually get pretty full up on it via equity grants (Gorman has $18 million of MS stock). So it's a nice touch, bullish signal, strong statement of his views on MS and perhaps the broader market.

That said the last big U.S. investment bank boss to buy his own stock in the open market was Brian Moynihan, who bought $390k worth of BAC stock in August 2010, which is now worth $265k.

Morgan Stanley Chief Gorman Buys $2.06 Million of Shares as Price Declines [Bloomberg]