Tomahawk, WI 9/17/2013 (BasicsMedia) –  As a top financial services company with a global base, it is no wonder that Morgan Stanley (NYSE:MS) boasts governments, corporations, individuals and financial institutions as its major clients. MS may not have performed to the level expected of a company of its size. But when compared with some of its major competitors, one sees that Morgan Stanley has really tried and made tremendous efforts on many fronts. It is one of the large banks which were seriously affected by the global financial meltdown of 2008. Has it fully recovered from this crisis?

I have always been deeply interested in the stock of major financial institutions such as MS. This interest received a major boost once stories started appearing on the media to the effect that these global banks were partly responsible for what the world experienced in the name of financial depression which started in 2008, or thereabouts. When the bank released its second quarter of 2013 financial results, it also announced that it was going to buy $500 million worth of its shares back. This led to a lot of confusion as a significant number of investors didn’t know what to do.

MS Not a Big Risk Any More

There was a time when MS stock was considered a major risk by most investors, analysts included. What I have noted in the last two years, is that the bank is no longer considered a major risk. It is now listed by many investors and analysts as a less risky financial holding company. The bank’s decision to put more emphasis and resources in wealth management has also somehow helped to shed off its image as a risky stock. Its focus on being a bank which is more focused on brokerage services, has also helped a great deal towards this new perception by all.

 There is a very high chance that the bank could benefit a great deal from a solid upside. This is what the industry expects from the bank’s decision to be oriented more towards wealth management than other services. Therefore, I see the bank moving towards a period where it will be able to recover more in terms of wealth management services compared to what it lost in the past years. Moreover, I think that there will be a moderation of the bank’s cost pressure which would create quite a conducive environment in which the bank will continue to flourish.

 MS Negotiates Goes Through Successful Transition

 Morgan Stanley appears to have successfully gone through this period of transition. It has put more focus on its retail brokerage services in addition to the wealth management services and this two-pronged strategy has enabled the bank to firmly be on the road towards full recovery. As an indication of how much it treasures the brokerage side of its business, it recently acquired Smith Barney, a renowned brokerage firm, for around $9 billion. I also believe that this bank will benefit from better interest margins as the short-term rates start rising in the near future.

With this in mind, I would definitely say that MS is totally on the path to full recovery. It is doing the right things, and making the best decisions to help it out.

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