Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Gorman Strengthens His Hold on MSSB Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, September 19, 2012

Gorman Strengthens His Hold on MSSB

News summary by MFWire's editors

Advisor-sold mutual fund shops, ownership for one of your key distribution partners is consolidating. Suzanne Kapner and Aaron Lucchetti in the Wall Street Journal report that, as expected, Morgan Stanley CEO James Gorman just had the investment bank shell out $1.89 billion to snap up another 14 percent of Morgan Stanley Smith Barney from Citigroup.

Citi and Morgan Stanley revealed the deal last week.

The deal boosts Morgan Stanley's MSSB stake to 65 percent and gives Gorman the option of buying the remaining 35 percent by June 1, 2015. Both the current deal and the 35 percent remaining value MSSB at the same combined price: $13.5 billion. That valuation is a blow to Citi: as recently as February, the same two WSJ reporters revealed that the bank valued MSSB at $20 billion.

MSSB ended 2011 with $1.65 trillion in client assets. As of March 31, the wirehouse had 17,193 advisors.

Former Merrill Lynch president Gregory Fleming leads Morgan Stanley's wealth division, which MSSB. The wealth division had revenues of $13.4 billion and pretax margins of 10 percent (i.e. $1.34 billion) in 2011. According to the WSJ, Gorman hopes to boost MSSB's margins to 20 percent. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use