Ever So Quietly, Morgan Stanley is Becoming America's Greatest Investment Bank, Surpassing Goldman

The_Real_Fly's picture


Content originally published at iBankCoin.com

While everyone on Main street demonizes Goldman for doing God's work, the greedy goblins from Morgan Stanley are, ever so quietly, outperforming Goldman at every turn -- reducing them to a second rate investment bank.

Last quarter, Morgan's bond desk beat out Goldman's for the first time in six years -- likely a result of inferior recruiting at the world's 'best' investment bank. Over at the equities desk, Goldman posted a billion less in revenues than Morgan last year -- the largest difference since 2013.

Operationally, both firms are struggling -- one more than the other, however.

Ahead of earnings next week, Goldman is expected to show a trading desk decline of 16% to Morgan Stanley's -4%.

Year to date, MS is crushing GS, +9.7% for the year, compared to Goldman's -5.2%. Perhaps the brain drain to the Trump administration is taking a toll?

Either way, the two firms' market caps are about to converge, with Goldman's at 91 billion and Morgan's approaching 85 billion.

During the last slump in financials, circa 2011, Goldman's market cap bottomed out at $44b, about twice as large as Morgan's. Since then, the craven misanthropes from Morgan have been busy little bees, catching up to their historical arch nemesis.

You're almost there lads.

Look how horrible Goldman's performance has been. Literally, everyone is laughing at their stock and income statement. Everyone.

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LightBulb18's picture

It would be great to have A score card of team God versus team Satan, but I dont think we are at that level yet. Also there is no reason to believe that this is A measurment of progress to that aim of universal justice than any other, like the isis in the middle east measuring stick. Means something, probably, what exactly? Probably one Satan worshiper versus A lucerfarian. In God I trust.

Harry Lightning's picture

I had coverage from the fixed income desks of both firms for many years when I was an institutional trader, and I hardly ever dealt with GS. Their prices just were not competitive, and when that former employee wrote that op-ed letter a few years ago about how Goldman screws its clients, it sounded like what I had seen for many years. Very polite and knowledgable people, but with prices that were way out of line compared to other firms who offered similar politeness and information.  I always wondered why Goldman had clients in fixed income, perhaps their clients were getting some benefit from some other area of the firm. 

MS was much more reasonable with their prices. I actually did underwritings through them, and they always made sure to leave some profit for everyone in the deal. Which is why people liked doing business with them. They weren't the best dealer on the street for prices, but they had enough good offerings that you could do business with them. 

I guess that the new generations of traders are waking up to the pricing mismatches. This is an Amazon generation where prices matter more than anything, so if you don't have the prices you don't get the business. Maybe Goldman will actually have to change and become competitive now ! Wouldn't that be something ?

btw, the major dealer who had the best pricing on a regular basis was Lehman. At least that was my experience. They were the nicest and best firm I dealt with among the big boys. There also were a lot of really good regional dealers, especially Countrywide, who were very competitive with prices. 

baldknobber's picture

Are they Jews or are they puppets for the Jews?  Just trying to keep my scorecard up to date

Harry Lightning's picture

Years ago, Goldman and Salomon Brothers were considered to be the Jewish firms, and First Boston and MorgStan were thought of as the WASP firms. Everyone else was non-denominational, although there were wifts of WASP-ism in many of the old like firms like Brown Brothers Harriman and Dillon Read. Mr. Pollock obviously celebrated Hannukah, but his firm was not looked upon as a firm that catered to Jewish investors. Later on when Sandy Weill got into the game, Shearson was considered a firm that favored Jewish employees and customers. When he eventually took over Citibank, it was no wonder that he wanted Salomon under the Citi umbrella. Citibank had been an old line firm that had areas of WASP-i-ness, so Sandy was not going to change that culture. So he imported his cultural heritage to help shape the firm while he was there.

Mr. Pollock was a real patriot, so much so that he forbid his Treasury bond traders from going home short in Treasuries each day. They could get short to hedge inventory or auctions during the day, but they could not be short overnight. He felt it was his firm's obligation as a promary government securities dealer to support the securities of the United States. It was a different age, with far less securities. Today it would not be so wise to have such a policy no matter how patriotic you are, due to the massive inventories the primary dealers are asked to carry.

zzzz88's picture

they all suck the blood from you and me

LightBulb18's picture

The war lords and druids took A much higher percentage, at least there were some good times under the Jews, which means there can be again.

tedstr's picture

Selling crap back to retail clients.  Easy peasy

Consuelo's picture






Beating GS...?


I thought we settled who was better when Gabe Kaplan beat Robert Conrad in the 100...

GRDguy's picture

Ever so quietly, Morgan Stanley is once again lyin' and stealin' more than others, at the moment.

Morgan Stanley to settle class-action lawsuit



Grandad Grumps's picture

What? Doe Goldman not want to be tagged as the Bank that destroyed the US?

vaporland's picture

JP Morgan dead over 100 years yet still living in finance. Is this a great country or what?

Chippewa Partners's picture

How quickly you forget the privatization of profits and socialization of losses that allowed these massive dens of thieves to continue their merry way. 

May Creator bless the American taxpayer.

shovelhead's picture

Uh, if what we've seen so far is Creators blessing, then I wish he would find something else to do.

How about blowing up gophers? That would be useful.

theprofromdover's picture

Just wonderin' which one will get bailed out ..........