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. Please see our Subscription Terms and Conditions.


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

John Mack interview: Morgan Stanley’s reversal of fortunes

John Mack has the job he always wanted. One of Wall Street’s leading firms has the leader it desperately needed. Morgan Stanley is now the investment bank with momentum. Mack and his senior management tell Clive Horwood how they revived the firm’s fortunes.

John Mack cartoon.jpg

MORGAN STANLEY IS back. In fact, so quick has the turnaround in its fortunes been that you probably didn’t even notice that it had gone away.

When the US investment bank reported its earnings for the second quarter of 2007 in June, it surpassed all expectations. Perhaps the market should not have been so surprised. Morgan Stanley’s full-year 2006 results had been a huge advance on the dark days of 2005. Its Q1 2007 results were a record.

But last month, Morgan Stanley stood out from the rest of Wall Street with the quality of its Q2 earnings – which jumped 40% on the previous year. Once again the firm was the darling of analysts: "We view Morgan Stanley as the clear top performer in its group," said a report from Fox-Pitt Kelton.

More important, Morgan Stanley is once more in favour with its stockholders. Its share price jumped from $60 in June 2006 to $90 a year later; analysts at CIBC World Markets have a target price for the shares of $112.

Crucially, Morgan Stanley is back as an adviser of choice to its global client base.

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?

Tags

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