This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Morgan, Goldman Rivalry Heats Up

NEW YORK ( TheStreet) - Is it possible that Goldman Sachs (GS - Get Report) is once again facing competition on Wall Street?

Morgan Stanley (MS - Get Report), the underdog of the two remaining Wall Street securities firms, appears to be digging in its heels for a fight.

Morgan Stanley is moving forward with its business realignment, with James Gorman at the helm as its new chief executive. It turned a corner of sorts in the third quarter, reporting a profit of $498 million, after losing more than $13 billion in the three preceding periods. The current average analysts' view is for the firm to report another profit of 36 cents per share tomorrow.

Morgan Stanley's nascent turnaround is not significant just for itself, but also in what it means for Goldman Sachs.

The two firms have seen many competitors fall to the wayside, or get snatched up by bigger money-center banks. As everyone knows, Bear Stearns, Merrill Lynch and Lehman Brothers are no longer standalone competitors. Their operations are now part of JPMorgan Chase (JPM - Get Report), Barclays (BCS) or Bank of America (BCS), or they're kaput.

Morgan Stanley and Goldman survived the crisis of course, but as Goldman reported blockbuster earnings in 2009, Morgan Stanley hasn't had such a sunny stretch. The firm has been realigning its business strategy, while writing down mortgage exposure and less-profitable credit-market bets.

Goldman out-earned its competitor by an average of roughly $4.45 billion per quarter over the past year as a result. A big portion of that gravy came from fixed income trading, which recently lost its status as a major earnings generator as credit spreads have thinned out and activity has moderated.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AIG $55.50 0.22%
BAC $15.94 0.63%
BCS $16.15 0.75%
C $53.42 -0.48%
GS $190.59 0.49%


DOW 18,155.41 +58.51 0.32%
S&P 500 2,102.34 +3.81 0.18%
NASDAQ 4,987.6840 +20.5430 0.41%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs