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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
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(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.

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)
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)
The Morgan Stanley building is shown Tuesday, June 19, 2007 in New York. Morgan Stanley, the No. 2 U.S. investment bank, on Wednesday, June 20, 2007 reported fees from advising clients on acquisitions and stock trading lifted second-quarter profit 39 percent from the year-ago period. (AP Photo/Mark Lennihan)
The Morgan Stanley building is shown Tuesday, June 19, 2007 in New York. Morgan Stanley, the No. 2 U.S. investment bank, on Wednesday, June 20, 2007 reported fees from advising clients on acquisitions...   (Associated Press)
A sign on Morgan Stanley's headquarters is shown Monday, April 16, 2007 in New York. Morgan Stanley, the No. 2 U.S. investment bank, on Wednesday, June 20, 2007 reported fees from advising clients on acquisitions and stock trading lifted second-quarter profit 39 percent from the year-ago period.(AP Photo/Mark...
A sign on Morgan Stanley's headquarters is shown Monday, April 16, 2007 in New York. Morgan Stanley, the No. 2 U.S. investment bank, on Wednesday, June 20, 2007 reported fees from advising clients on...   (Associated Press)
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Morgan Stanley toots its own horn: Press release touts "record" second quarter
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Goldman Sachs • subprime mortgages • business • Morgan Stanley • Bear Stearns • John Mack • second quarter earnings

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