Morgan Stanley 2nd Quarter Wallops Rivals

Profits spike 40% as subprime slump smacks rest of sector
By J. Kelman,  Newser User
Posted Jun 20, 2007 10:23 AM CDT
ong with 13 managers of those lenders for not taking measures that would have prevented the crimes that led to the company's failure. (AP Photo / Mark Lennihan)   (Associated Press)
camera-icon View 2 more images

(Newser) – Morgan Stanley released far better-than-expected earnings figures today, with net income up over 40% in the last quarter. Riding strong fixed-income sales and trading figures, profits rose to $2.58 billion, up from $1.84 billion last year. That's a far cry from rivals Goldman Sachs and Bear Stearns, whose second-quarter bottom lines were hit hard by the collapse of the subprime mortgage market.

Revenue was up 32%, to $11.5 billion, with a growing percentage coming from international transactions. The company is working to double its 2005 earnings by 2010, CEO John Mack tells the New York Times.