Morgan Stanley Records Trading Losses for 33 Days in 2013Michael J. Moore
Morgan Stanley, owner of the world’s biggest brokerage, lost money in its trading businesses on 33 days last year, down from 37 days in 2012 and the fewest since 2006.
The bank’s traders lost money on six days in the fourth quarter, compared with seven in the third, the New York-based firm said in a regulatory filing today. Morgan Stanley made more than $100 million on 14 days in 2013, the least since 2005.
Chief Executive Officer James Gorman, 55, has pitched investors on a plan that relies more on wealth and asset management and a trading business that produces less volatile results. The number of days that featured gains of more than $100 million or losses were both down by more than half from their peaks.
Morgan Stanley’s trading revenue, excluding accounting charges, dropped 5 percent last year to the lowest since the financial crisis as the firm shrank the amount of capital it allocated to its fixed-income business. The bank generated the second-most revenue from equity trading among the nine largest global investment banks and the eighth-most from fixed income.