Morgan Stanley beats expectations

Morgan Stanley--one of the two last full-service independent investment banks--reported results a day earlier than scheduled. Thankfully, it did not add to the drumbeat of depressing news. Like Goldman Sachs, it beat expectations for the third quarter. It earned $1.32 a share, compared with expected earnings of 78 cents, so this would appear to be a decisive beat. Unlike Goldman Sachs, Morgan's revenue actually rose. Its core prime brokerage, commodities and equities businesses were generally strong. But the pressure is really on Morgan Stanley to prove that it should remain untethered to a commercial bank. This will not be a case made in one quarter. A deal at some point is not out of the question.

For more:
- here's the AP article

Related Articles:
Morgan Stanley on the Fannie, Freddie hot seat
Opportunity costs high for Morgan Stanley in GSE project