In this Wednesday, Oct. 10, 2012 photo, people pass Morgan Stanley’s headquarters in New York. Morgan Stanley says it swung to a profit in the fourth quarter. Shares jumped in pre-market trading, Friday, Jan. 18, 2013. (AP Photo/Richard Drew)
NEW YORK (AP) — Profits roared back at the investment bank Morgan Stanley in the fourth quarter, reversing a loss in the same period a year ago, when its results were weighed down by a costly legal settlement.
Earnings increased sharply across the bank’s business lines, and its stock jumped. Morgan Stanley’s investment bank underwrote more stock and bond offerings and brought in more fees from advising companies on mergers and other deals. Financial advisers in the wealth management unit, who work with individual investors, generated more revenue per worker.
The bank is transforming itself to adapt to a post-financial crisis world. Like other investment banks, Morgan Stanley has traditionally focused on doing business with companies, governments and other big organizations. But the bank is adapting its strategy ahead of new regulations, which are eliminating some of the practices that the bank used to rely on for revenue, such as trading for its own profit.
So Morgan Stanley is expanding its work with individual investors, which can provide a steady Login to read more