Morgan Stanley's Profits Decline Amid Investment Bank Slowdown

Morgan Stanley's third-quarter profits dropped 9% from a year ago due to a slowdown in revenue from investment banking and trading, reflecting the ongoing struggles of Wall Street. While its drop in profits was smaller than rival Goldman Sachs, it trailed behind JPMorgan, Bank of America, Wells Fargo, and Citigroup, which all saw increases. Morgan Stanley's investment banking revenues fell 27%, placing it last among big banks with significant Wall Street operations. However, its wealth and investment management units posted higher year-over-year profits. CEO James Gorman expects momentum to continue this year, with increased evidence of M&A and underwriting calendars building, but anticipates most activity to materialize in 2024.