Morgan Stanley Shares Plunge After Profit Drops on Slowdown
- Wealth-management asset flows slowed down in the third quarter
- Everything is pointing to a dealmaking rebound, CFO says
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Morgan Stanley shares plunged the most since June 2020 after the firm’s dealmakers posted the biggest drop in fees on Wall Street and its wealth management unit had the lowest inflows in more than three years.
Investment banking revenue slid 27% and the fixed-income trading business slumped, leading to a drop in profit. Revenue of $6.4 billion from the firm’s wealth-management business missed analysts’ estimates, and net new assets were $35.7 billion, the least since the depths of the pandemic.