Morgan Stanley plans bigger push into BofA, Citi, and JPM territory


“We have a spectacular asset,” Morgan Stanley (MS +1.7%) James Gorman tells the FT. “We’re the 10th largest bank in the country and we have no bricks and mortar.” Retail banking has become so important to Morgan Stanley, says Gorman, that management has recently explored - and rejected for now - publishing separate results for the business.

The focus going forward will be on lending to existing brokerage clients - particularly mortgages and loans secured against customers' portfolios.

Analysts note this isn't Gorman's first rodeo and his initial experience had a few bumps. As Merrill Lynch's brokerage chief in 2002, Gorman pushed to develop deeper banking relationships with that company's clients. "There's absolutely no reason why our clients should have a bank relationship away from Merrill," he said then. Two years later, Merrill took a big charge for bad loans.

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Comments (2)
  • Don Dion
    , contributor
    Comments (4441) | Send Message
     
    Merrill also eventually blew up and had to be bailed out by BAC and the U.S. taxpayers.
    29 Apr 2014, 03:56 PM Reply Like
  • Romeo Fayette
    , contributor
    Comments (88) | Send Message
     
    The bad loan chargoffs $MER took were a lot different than the portfolio lending this is referring too. This is talking about margin loans collateralized/secured by securities.
    29 Apr 2014, 04:09 PM Reply Like
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