Morgan Stanley Wealth Management (MS) loses another heavy hitter, this time John Dorsey -...

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RK Comments (399)
 
$215M of AUM is not a heavy hitter. Get some perspective, SA. $2B would be bigger hitter.
28 Nov 2012, 04:12 PM Reply Like

Sensible Investor Comments (60)
 
The articles don't shed light on the assets that MS is attracting, though one has to assume that Highs took over Walmart, essentially when MS took over Smith Barney. MS lacks the depth of management of a JPM or Wells, and their technology is woeful, as the firm cannot afford to compete with their peers, let alone buy the rest of Smith Barney. Clients and the investment community keep hearing excuses as management tells the press that if people don't like the firm to leave. No...better management would be able to grow the business, appreciably, which Gorman and Fleming can't seem to do.

The fact that management has a job after the share price declines we've seen in MS, is a mystery. Gorman is essentially over his head in running a large brokerage, and Fleming isn't a broker, but an investment banker. I don't see the value in placing or retaining assets with a firm that cannot afford to buy the rest of the joint venture, and offshored 22% of the firm, rather than show a commitment to the US and keeping jobs here, rather in India. I'll make a bet that brokers and clients will keep leaving for the smaller firms, which actually have managent that understand the brokerage business, have a true commitment to their staff and clients, and understand the business they have. I'd say that the best solution is to sell MS to a domestic bank, and be done with it.
28 Nov 2012, 06:50 PM Reply Like