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Morgan Stanley (MS) could reportedly ask the Fed's permission to repurchase shares for the first...

Morgan Stanley (MS) could reportedly ask the Fed's permission to repurchase shares for the first time in four years. Any request request could come next month as part of the bank's annual stress tests, and would follow CEO James Gorman last month expressing his desire to return capital to "long-suffering shareholders."
Comments (2)
  • Sensible Investor
    , contributor
    Comments (73) | Send Message
     
    If MS can repurchase shares then it can pay brokers bonuses, and also buy the rest of Smith Barney. However, the firm is searching for ways to boost its share price rather than improving management or the client experience. There needs to be a hard look at priorities-clients, shareholders and employees, rather than share repurchases when the fundamentals and caliber of management don't support much else than selling the firm after years of losses, broker defections, and poor management. The only solution here is not share repurchases, but a sale of the firm to a larger competitor and management change, starting with Gorman and Fleming. Placing one's head in the sand is not leadership. The performance of MS shares and overall business environment don't support share repurchases. James needs his priorities reset...
    11 Dec 2012, 07:45 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2500) | Send Message
     
    What makes you think the regulators would approve a sale of MS to another bank, or that there is even a buyer? MS is the 7th largest bank holding company in the US, so any company with the size needed to acquire it would become a top 5 largest holding company. The regulators want smaller banks these days, not larger ones.

     

    With shares trading below book, share buybacks are an excellent use of capital. With unemployment high, wages, and bonuses, should be coming down. There's no easy way out with a sale, management needs to raise revenue, and cut costs, if this bank wants to get back to being able to earn a decent ROE.
    11 Dec 2012, 08:10 AM Reply Like
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