Morgan Stanley Made Some Money, Is About To Spend Some Money

Quarterly earnings vs quarterly fines.

The House of Gorman joined those of Blankfein and Dimon in beating the Street in the first quarter, earning itself a tidy $2.4 billion profit. Which is good, because it’s going to need a bit of that kitty any day now.

A deal with New York’s top litigator, Eric Schneiderman, would likely include some cash from Morgan Stanley as well as a chunk of consumer relief. The pact would clear up another headache for the New York firm and add to the $130 billion legal tab rung up by the largest U.S. banks for their actions during the crisis...Morgan Stanley’s actual costs from the agreement are expected to fall far short of $500 million. That is because banks generally account as expenses only a fraction of the value they agree to dispense in consumer relief.

Morgan Stanley’s Results Improve on Stronger Trading, Deal Environment [WSJ]
Morgan Stanley Tops Estimates on Brokerage, Equity Trading [Bloomberg]
Morgan Stanley, New York Talk $500 Million Mortgage-Bond Pact [WSJ]


By Steve Jurvetson [CC BY 2.0], via Wikimedia Commons

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