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Has Morgan Stanley (NYSE:MS) Become A Successful Bank In Post-Financial Crisis?

Boston, MA 09/19/2014 (wallstreetpr) – Financial services provider, Morgan Stanley (NYSE:MS) was one of the two financial institutions to convert themselves into a bank at the height of the financial imbroglio in 2008. Has it become successful for the company and has it addressed the doubts raised by skeptics about its survival? There was no doubt that the company has come a long way in not only re-building itself but also gained the investors’ confidence.

Placed Well

Most of the analysts interviewed by Bloomberg believe that the company has done better than expected. For instance, billionaire investor and Chairman of Berkshire Hathaway Inc. (NYSE:BRK.A), Warren Buffett told the Channel that in the light of the financial crisis faced in 2008, its performance was better than he might have expected.

Buffett also said that the establishment was able to get back the locomotive on the tracks. He added that it commenced from a dead to move in a big way, and it would continue its uptick. Morgan Stanley (NYSE:MS) shares also reached its high of $36.25 on September 18 for the first time after September 12, 2008, a day before the century-old financial institution, Lehman Brothers Holdings Inc., collapsed. This is one of the factors that suggest the performance of the bank and its capability to address the concerns raised by skeptics.

Safer Business

Morgan Stanley (NYSE:MS) has preferred the safe way of doing business with a bias towards retail brokerage. In a way, the company has rebuilt itself from the financial catastrophe the overall industry was subjected to. The focus has reduced the risk factors largely.

Morgan Stanley (NYSE:MS) also benefited from an improving economy and surging deal fees in the booming markets. This has virtually addressed the concerns of skeptics that the bank would suffer under the stricter capital rules and regulations, which would eventually put pressures on returns.

Credit Suisse Group AG (ADR) (NYSE:CS) analyst Christian Bolu said that Morgan Stanley was benefiting from its years of investment to rebuild its business. The company has been well placed to gain from a more favorable interest-rate backdrop and an improving operating environment.

Morgan Stanley was also able to lift its margins in its wealth-management segment since its size doubled from its purchase of Smith Barney in 2009 from Citigroup Inc (NYSE:C).

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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