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Morgan Stanley (MS)

- NYSE
  • Sep. 17, 2014, 3:16 PM
    • Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
    • Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
    • U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
    • MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
    • Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
    • Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
    | 6 Comments
  • Sep. 16, 2014, 8:22 AM
    • Magnum Hunter Resources (NYSE:MHR) says it is bringing in Morgan Stanley as a partner in its Eureka Hunter natural gas gathering subsidiary in the Marcellus and Utica shale fields, giving the two co-ownership in the business valued at $1B.
    • Morgan Stanley Infrastructure (NYSE:MS) agrees to pay $65M to MHR for a 6.5% stake and will buy ArcLight Capital Partners' 41% stake in the business for an unspecified amount.
    | 12 Comments
  • Sep. 16, 2014, 7:20 AM
    • Morgan Stanley's (NYSE:MS) chairman of China investment banking Alex To plans to exit soon to run Bank of America's (NYSE:BAC) investment bank in that country. To joined Morgan in 2006 and played a key role in Shuanghai's purchase of Smithfield foods last year. His bank currently ranks sixth in investment banking revenue in Asia ex-Japan, according to Dealogic. BofA ranks ninth.
    • The move is the latest in a series of management moves in China investment banking - in July JPMorgan grabbed UBS's top guy, and last month Morgan Stanley lured over a Deutsche Bank executive.
    | Comment!
  • Sep. 9, 2014, 12:24 PM
    • The Fed intends to impose a capital surcharge on banks tougher than the international standard, according to Fed Governor Daniel Tarullo's prepared remarks for the Senate Banking Committee. Those banks with heavier reliance on short-term funding like overnight loans - i.e. Goldman Sachs (GS -1%) and Morgan Stanley (MS -1.8%) - will likely face even more rigorous requirements.
    • Officials haven't yet decided on a number, but reportedly are considering as much as 200 basis points more than the top range of 2.5% of risk-weighted assets agreed to by international regulators.
    • What's not yet clear is who would need to raise capital to meet the new, tougher standard.
    • Citigroup (C -1%), Bank of America (BAC -0.6%), JPMorgan (JPM -1.3%), Wells Fargo (WFC -0.4%), State Street (STT -1.1%), Bank of New York Mellon (BK -0.9%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 25 Comments
  • Sep. 5, 2014, 9:46 AM
    • Morgan Stanley (MS -1.2%) is an outlier to the downside among the big banks after Macquarie rings the register on its Outperform call, downgrading to Neutral, citing capital returns that have lagged peers.
    | 1 Comment
  • Sep. 5, 2014, 3:41 AM
    • U.S. Federal Judge Denise Cote has ruled that investors may press claims against 12 major banks for violating antitrust law by limiting competition and fixing prices in the $21T CDS market, even though improved liquidity should have driven costs down.
    • The defendants include BofA (NYSE:BAC), Barclays (NYSE:BCS), BNP Paribas (OTC:BNPZY), Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), Goldman Sachs (NYSE:GS), HSBC (NYSE:HSBC), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), RBS (NYSE:RBS) and UBS (NYSE:UBS).
    | 34 Comments
  • Sep. 4, 2014, 7:14 AM
    • The "overlaps" between Morgan Stanley's (NYSE:MS) and Rosneft's (OTC:RNFTF) activities are very limited and several strong players would remain in the market after the merger, concludes the European Commission.
    • Still up is a U.S. security review.
    | Comment!
  • Sep. 4, 2014, 3:18 AM
    • U.S. regulators have approved of the proposed liquidity rules to safeguard banks in case of a financial crunch.
    • The rules are requiring large U.S. banks to load up on ultra-safe assets to ensure enough cash and securities to fund their operations for 30 days. Separate liquidity rules for foreign banks will be drawn up at a later date.
    • Big banks will need to hold a total of about $2.5T in easy-to-sell assets by 2017, which would result in a $100B shortfall if the threshold applied today.
    • Related tickers: JPM, C, BAC, WFC, GS, MS, BK, STT, ZION
    • Previously: Bank regulators to vote on new liquidity rules
    | 14 Comments
  • Sep. 3, 2014, 2:39 AM
    • Bank regulators are expected to finalize rules today that would require banks to hold capital against every asset on their books, and approve of a "liquidity-coverage ratio", which would require large banks to load up on ultra-safe assets to fund their operations for 30 days.
    • The new rules have Wall Street concerned due to the likely harm to earnings and lending restrictions, although regulators say the policies will create a safer financial system.
    • Related tickers: JPM, C, BAC, WFC, GS, MS, BK, STT, ZION
    | 11 Comments
  • Aug. 29, 2014, 3:00 AM
    • Morgan Stanley (NYSE:MS) is filing plans to build, own and operate one of the first U.S. compressed natural gas export facilities and submitted its application to the Department of Energy in May.
    • The move is the first sign that the bank is returning to the physical commodity markets even as it sells its global oil business.
    • Morgan Stanley, along with Goldman, are the only two Wall Street banks that are allowed to own and operate infrastructure of raw materials due to their "grandfather" status for any commodities activities they engaged in before 1997.
    | 4 Comments
  • Aug. 27, 2014, 6:58 AM
    • Charles Schwab (NYSE:SCHW) has lost a $15M arbitration case against Morgan Stanley (NYSE:MS), ending a dispute that began in 2012.
    • Schwab accused Morgan Stanley of maliciously recruiting brokers from a San Francisco office, who then left with confidential trade secrets.
    | Comment!
  • Aug. 25, 2014, 11:49 AM
    • Following major-league mortgage-related settlements with JPMorgan, Citigroup, and Bank of America, the DOJ has turned its attention to Goldman Sachs (GS +2.2%) and Morgan Stanley (MS +3.2%), and both are in early discussions, reports the FT. Evidence is still being gathered, say the FT's sources, and negotiations over a deal are still a ways off.
    • Neither Morgan nor Goldman were as big of players in mortgages as the other banks, so the terms and numbers are likely to be somewhat eased from the headline-grabbing ones of JPMorgan, Citi, and BofA.
    • Previously: Goldman settles with FHFA, will buy back RMBS for $3.15B
    | 3 Comments
  • Aug. 13, 2014, 3:14 AM
    • Bank officials, trade groups and lawmakers are quietly pressing the Federal Reserve for a delay of up to seven years regarding the rule that limits their investments in private-equity and venture-capital funds
    • The "Volcker rule," part of the Dodd-Frank legislation, restricts banks' ownership stake in hedge funds and private equity funds, and prohibits banks from making speculative bets with their own money.
    • Regulators finalized the rule in December but agreed not to enforce it until 2015.
    • Related tickers: JPM, C, BAC, WFC, GS, MS, BK, STT, ZION
    | 11 Comments
  • Aug. 6, 2014, 8:48 AM
    • The Federal Reserve and the FDIC say the bankruptcy plans submitted by 11 of the largest banks make "unrealistic or inadequately supported" assumptions and "fail to make, or even to identify, the kinds of changes in firm structure and practices that would be necessary to enhance the prospects for" an orderly failure. Ouch!
    • Full feedback
    • The 11 dinged: BAC, BK, C, GS, JPM, MS, STT, and the U.S. units of BCS, CS, DB, and UBS.
    • To review: Dodd-Frank requires banks annually submit a "living will" detailing their operations and exposures and how they could be dismantled without the need of a bailout in the event they near failure. Pleasing the regulators is a must as they have the power to force tougher capital rules or restrictions on growth, or even mandate a breakup of the lenders. As for the current failures, the banks have about a year to address D.C.'s concerns.
    • "Despite the thousands of pages of material these firms submitted, the plans provide no credible or clear path through bankruptcy that doesn't require unrealistic assumptions and direct or indirect public support," says the FDIC's #2 official, Thomas Hoenig.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | 33 Comments
  • Aug. 6, 2014, 1:58 AM
    • Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) have now been added to the long list of banks being investigated for their dark pools.
    • The probes started with a lawsuit from the New York Attorney General in June which accused Barclays of favoring high frequency traders over other investors within the pool.
    • Since then, investigations have spread to Deutsche Bank, UBS and Credit Suisse.
    | 2 Comments
  • Aug. 5, 2014, 5:55 PM
    • Morgan Stanley (NYSE:MS) discloses its Q2 earnings were $0.02/share lower than it initially reported last month, bringing final Q2 earnings to $0.92, after it increased legal reserves by $53M to reflect settlements of mortgage-related claims.
    • According to a 10-Q form filed with the SEC, MS reached agreements to settle three mortgage-related class-action lawsuits in July.
    • MS also says California's attorney general may sue the bank over its alleged misrepresentations of mortgage bonds before the financial crisis; the AG believes "the company's conduct violated California law and that it may seek treble damages, penalties and injunctive relief."
    | 3 Comments
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Company Description
Morgan Stanley through its subsidiaries and affiliates, provides financial products and services to a diversified group of clients and customers, including corporations, governments, financial institutions and individuals.