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]