Meredith Whitney, of her own Meredith Whitney Advisory
Group, said there was little to “chat about” given the particularly weak 4%
return on equity Morgan Stanley sported.
“It can’t be much fun to be a shareholder of Morgan Stanley, and, things
got a lot worse this past June when Moody’s downgraded the company’s debt to
one of the lowest ratings of its competitors,” Whitney wrote, as the first
sentence of her research report. “With a 4% ROE, at what point does it make
sense for Morgan Stanley to begin looking for ‘a rich uncle’?”
Morgan Stanley already has what some could call a rich uncle
in Mitsubishi Financial Group.
She also said “the reality is that they currently have a
glaring competitive disadvantage” and that banks with bigger balance sheets,
including Bank of America and Citigroup, will continue to outperform Morgan
Stanley….
No comments:
Post a Comment