The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Abigail with attitude: What has Morgan Stanley's Gorman achieved after 3 years at the top?

Pandit and Havens used to work at Morgan Stanley. In fact, at one time, Pandit was president of the firm. As James Gorman struggles with John Mack’s legacy, a wild thought crosses my mind. Might Pandit one day return to run his alma mater? Over at Morgan Stanley, Gorman is facing the third anniversary of his ascension to the chief executive throne. And the going has not been easy.

"It’s a mixed bag," a source grumbled. "Revenues are probably a bit light. Costs are arguably too high and they have too much capital, so the return on equity is poor. You have to ask: is the strategy working?" Gorman is trying to rebalance the volatile institutional securities business with a complementary wealth management platform. Ironically, in the third quarter of 2012, institutional securities’ revenues rose some 20% whereas wealth management’s net revenues were static.

Morgan Stanley still has some excellent businesses, such as its advisory and equity capital markets franchises, but the wealth management road remains bumpy. Gorman’s targeted 20% pre-tax profit margin for the division is still a mirage and there have been problems with integrating technology. At the end of the summer, Reuters reported that a group of high-profile advisers were threatening a mass exodus due to problems with a new technology platform.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree