While Goldman Sachs seems very comfortable relying in proprietary risk to generate returns, Morgan Stanley will likely take a different tack. At its annual meeting this week, CEO John Mack is expected to discuss a business model that will focus on underwriting, wealth management, and corporate advisory services, reports Dow Jones. There are advantages to a lower risk approach, it may be that Mr. Market affords risk-averse players a higher multiple than Goldman Sachs, which once again seems to be separating itself from the pack, at least when it comes to models.

We may see a more retail-friendly Morgan Stanley in the near-term, intimated of course by the Smith Barney deal. Dow Jones suggests this is the old Merrill Lynch model at play. It's worth remembering that Merrill Lynch ended up betting its future on the subprime market, to disastrous results. 

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