June 2006
Wealth management: James Gorman outlines plans to put business back on track
“Given all that has happened I’m surprised it wasn’t negative $60 billion”
James Gorman, Morgan Stanley
In his first public presentation since joining Morgan Stanley in February as president and COO of the global wealth management business, James Gorman outlined how he intended to turn the dwindling arm into a competitive force in the industry.
While other global financial institutions have been revamping their private banking arms to adapt to emerging trends among high-net-worth clients, Morgan Stanley had so far appeared to have to given up altogether. Gorman, who joined from Merrill Lynch where he was president of the US and international private client business, is the first to admit that the business deserves a much-needed overhaul.
Speaking at the UBS Global Financial Services Conference in May, Gorman was his usual candid self. “Performance has been poor since 2001,” he said. “The business has underperformed the industry group and its potential. Margins have averaged just 6%, and pre-tax revenues dropped $96 million from 2003 to 2005. While competitors were extracting value at the bottom of the cycle, [Morgan Stanley] continued to lose...
This is archived content. Your current settings does not currently allow access to the archive. To gain access visit the subscription page or call our hotline on +44 (0)207 779 8999.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
Level 1:
- Online access to the past 12 months content
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Level 2:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe