A recent earnings report from Morgan Stanley showed that investment bank’s profit tumbled 9% compared with the year-ago period, affected by the trading plunge that caused other Wall Street companies to drop as well.
Reports showed a profit of $2.4 billion ($1.39 a share) on revenue of $10.3 billion, all of which are lower than the year-ago profit of $2.7 billion($1.45 a share) on revenue of $11.1 billion.
Shares of Morgan Stanley (NYSE: MS) rallied 2% in the premarket session, while being 20% lower than the year-ago period (see the MS stock chart here).
In 2010, Morgan Stanley has appointed its current CEO James Gorman, who managed to show bring results in stock markets. Since that time, MS’s wealth management has doubled by acquiring Smith Barney, while Gorman has fired 25% of bond traders as well as getting rid of exposed assets.