Wealth management: Bank of Morgan Stanley
Ten years on from the crisis, Morgan Stanley was already a different animal, with a shift to half its revenues generated from wealth management – what will it look like in another 10 years? Maybe more like Bank of America or JPMorgan…
In April, Morgan Stanley chief executive James Gorman announced that Shelley O’Connor, who has co-headed the wealth management business since 2016, is taking over the private bank and the institutional banking unit, leaving Andy Saperstein to run wealth management solo.
In some ways, it looks like a move to replace Colm Kelleher, who currently runs the institutional banking business and who retires in June. But there is a sense that by putting O’Connor in to oversee the two banking parts of the business (with Eric Heaton becoming president of the two), Gorman is setting his sights on building out Morgan Stanley as a full-blown bank – selling mortgages and deposit accounts and credit. Indeed, in his memo to the firm, Gorman referred to the “criticality of the banks to the future growth of our business”.