BANZAI7 NEWS--Morgan Stanley might be back in the black, but its latest results demonstrate the earnings gap remains wide with rival Goldman Sachs Group Inc.
The biggest realignment of Wall Street since the Great Depression has caused both investment banks to pursue very different structures--and that's caused a rift between their results. For instance, Morgan Stanley posted a profit of $757 million during the third quarter while Goldman secured $3.19 billion.
Morgan Stanley has chosen to be cautious about the risks it takes with its own money, and diversify through the recent deal to take a controlling stake in Citigroup Inc. (C) brokerage Smith Barney.
Goldman revved up risk and cashed in on trading distressed debt and other markets, raking up blockbuster profits.
WB7: The difference between MS and the Goldman Squid Gang, Morgan Stanley gets it.