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Where does this leave Morgan Stanley?

We’ve written variously about the appeal of working for JPMorgan, Goldman and Deutsche Bank in recent weeks, but we have neglected to consider the comparative allure, or lack of it, of the House of Mack.

On some measures, Morgan Stanley is doing very well. As DealBook pointed out earlier this week, it’s now top of the global rankings for M&A, compared to 10th at the end of the first quarter 2008.

Analyst Dick Bove is also positive on MS, claiming that –

The new business model which appears to be more oriented to generating a more predictable revenue flow is appealing.

· The global thrust, which is not new, is also positive.

· The restructured balance sheet is a major plus.

· The desire to reduce risk taking is yet another plus.

· The contraction in the competition will help.

Bove adds that Morgan Stanley’s acquisition of Smith Barney will generate a steady and recurring revenue stream and that investments from Mitsubishi UFJ and the Chinese government will allow it to expand internationally.

Goldman analysts are similarly upbeat. They upgraded Morgan Stanley last month, based on its strong capital position and ability to profit from improving conditions in capital markets.

However, not all is well at MS. John Mack said this week that 2009 will be a ‘difficult year’. Unlike Goldman and BofA he also said he has no plans to repay the US government’s TARP money. If key competitors return the cash and MS doesn’t, it could find itself at a significant disadvantage in terms of pay.

Some MS bankers may have come to appreciate this already. A FIG banker has left for UBS, the head of infrastructure has left for Greenhill and the head of prime brokerage has resigned.

Comments (15)

  1. Is Morgan Stanley the next GS?

  2. Is John Mack the next Lloyd Blankfein?

  3. Should we flock to Morgan Stanley?

    George the great Reply
  4. Is me the next Sarah?

  5. Is Deutsche Bank the new Morgan Stanley?

  6. Is Sarah the next John Mack?

  7. If Morgan Stanley does not repay TARP, anything else it does will be in vain.

  8. My goodness. I can honestly say these articles get more boring by the day. What’s next? Is Private Bank X the new Private Bank Y? Can’t you think of anything more to write?

  9. JPandProud – you speak sense my friend from a dubious house……Nobody cares about these stories. The only thing you all need know if that you should all envy me for being at GS! HAHAHAH!!!!!!!!!!!!!!!

  10. GS_and_RICH……..I have never and will never envy ops clerks especially contractors

    KBC_and_Content Reply
  11. KBC_and_Content,

    i know a hot chick from kbc punter-hill.
    are you her?

  12. BODude…water cooler in 5 !! ?

    hotchick punter-hill Reply
  13. If you have a job, go and work… If not, go and join the window smashers… Oh, and take Henry with you – introduce him to the nihilists as a 20-year something übersuccessful banker rubbing it in in the noses of the great unwashed – let’s see whether he’s got streetfighter creds

  14. It is certain truth of any bank taking tarp, especailly Morgan, that IT people with a good name and track record will have little problem altering alliances if comp does not remain competitive with Goldman or other well respected non-tarp firms. Whilst Morgan’s culture is highly prized, priorities become more clear if it comes down to being able to buy that home or pay the mortgage.

  15. Is London the new Rome?

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