The Wall St Journal writes that it’s not as epic as little David bringing down Goliath, but Morgan Stanley would take it. With Goldman Sachs stumbling to a worse-than-expected earnings showing, kid brother Morgan Stanley is projected to post higher revenue than its rival for the first time since late 2008. Back then, the narrow victory was overshadowed by the near collapse of the entire banking system.
This quarter, Goldman’s weak trading efforts in bonds and commodities led to a relatively light $7.3 billion in net revenues, its lowest top-line figure since that fateful fourth quarter of 2008. That was also the last quarter Morgan Stanley had higher revenues than Goldman. Since then, Goldman has pulled off a nine-quarter winning streak over Morgan Stanley. During the stretch, Goldman has generated about $30 billion more in collective revenue than its cross town competitor. (The tally: $96 billion for Goldman vs. $65 billion for Morgan Stanley.)
Much of the revenue gap came from Morgan’s inability to make big money trading bonds, a Goldman specialty. This quarter however, Goldman slipped….
Read more at http://blogs.wsj.com/deals/2011/07/19/morgan-stanley-may-best-goliath-goldman/?mod=
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