Wednesday, October 21, 2009
Morgan Housel :: Townhall.com Columnist
Morgan Stanley's Back in the Game
by Morgan Housel
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A few months back, Morgan Stanley (NYSE: MS) made it clear that it wanted back in the game, beefing up its trading arm in order to match the greatness of Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM).

So far, so good.

Morgan's net income for the third quarter came in at $757 million, or $0.38 per share. That was actually down substantially from $6.97 per share last year, but last year's results were dramatically skewed by accounting gainsafter debt spreads blew out during a brief death scare. On a normalized basis, the current results were solid by any measure.

But as expected, almost all the sequential gains came from an uptick in trading revenue:

Segment

Q3 2009 Revenue

Q2 2009 Revenue

Investment Banking

$1.2 billion

$1.3 billion

Trading

$3.2 billion

$2 billion

Investments

$99 million

($115 million)

Commissions Continued...

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About The Author

Morgan Housel is a Motley Fool contributor.

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