July 18 - Morgan Stanley wasn't just last of the big U.S. banks to report Q2 earnings, but also had the weakest return on equity. Breakingviews editors discuss the CEO James Gorman's progress.
Morgan Stanley just wrapped up a big US banker earnings with another beat Blake all of its peers do it. Great results across the board. But. Still not sure James Gorman get their fast enough -- -- there that the numbers there the bank in new Ruth once you've. Take out all the bears interest -- bills went. Shelves are getting behind -- Angeles but no we knew of the getting. You know it's -- -- it's almost every business up fixed income trading extremely brilliant. They had the good quote but wealth management systems and as of now -- -- -- every division was giving up fifty I don't substantially -- the commit. Painted them and it's it's now it's five -- -- -- which is just it's -- James -- time it's 10%. My next you think that's triggered that's the bottom league tables right dolls and you are well I'm pretty pretty much mean B of -- insists the -- pastor -- does that mean that was teach quite can't get that number up faster. We'll also is that based -- some costs coming through from the crisis whether it's technical education cuts its -- which which have not been able to go out here. But what you slowing the pace where -- fixed income trading just isn't quite pitching. Olson has yet. That -- -- that's big revenue and a it ties and -- and everything else that was it was a that's also a business that was particularly good in the second quarter for fraud yet and isn't expected to necessarily be very well for the had the same period hostages as. I've pitched right on down -- -- -- which is pretty good about the ways and get an offseason fiscal second book. Because it was sick that they they held up well. Considering whether it will allows for a last year but it fickle this target which -- -- up -- revenue quote system. -- -- -- -- -- -- -- -- -- -- -- -- -- -- That's what you need to get get get the excitement the good thing about it will be sunny and -- -- -- keeping this this looks terrible. On the face of it but it is a few adults in this and -- kept pace. The final state gets this Bonnie -- says he -- break out between -- and that's really big plan is really -- -- at all -- and that's for -- thanks and yet they're annals of -- that it took so ludicrous -- an extra hundred million from that the schools if -- and -- whole thing is that the city and this -- statements in this age of fifty million a quarter of -- that might be associated with. -- joint venture. You go litigation costs up thumbs up there are we alone. It's eight gets close to the targets that you -- it's like you really it's -- was -- that the military and that commitment is not quite it's it's getting there. But I. So ultimately that is they're still more pressure on -- -- as he kind of moving along enough to kind of keep people -- -- -- set a target of next year I think for the Smithsonian to target. I think he's building he's managed himself bit more time the stocks go way up this point in part because infinitely they announced the first time since the crisis. A chip on -- can't check it with a bit of a surprise -- minutes is not huge but it's -- -- big enough that it's it's the beatings they've been saying trees that getting into that capital. -- -- -- -- -- -- -- -- -- -- -- -- And he went back to the Fed off they go global that's in the coming. -- -- it became noticeable amount what should give back often write stress test them to -- to me it's a great indication what happens in the future course. If you and if you can but emotion it's they knew it he goes down so your return it he should go -- BioWare will keep and -- Morgan Stanley we're back with more. Breaking -- tomorrow.