Core Insights - Morgan Stanley shares dropped over 5% following reports of regulatory probes into its wealth management arm regarding client vetting processes related to money laundering risks [1][2][4] - The investigations involve multiple regulators, including the SEC and OCC, focusing on the bank's identity verification and tracking of high-risk clients, particularly international ones [2][3] - Morgan Stanley's wealth management division is crucial to its revenue, generating about half of the bank's total revenue and overseeing approximately $5 trillion in assets [3] Regulatory Scrutiny - The U.S. Securities and Exchange Commission (SEC) and the Office of the Comptroller of the Currency (OCC) are investigating the adequacy of Morgan Stanley's client screening processes [2] - Regulators are particularly interested in how the bank verifies the identity of high net worth individuals and the sources of their wealth [2] Financial Performance - Morgan Stanley's wealth management arm has been a key part of its strategy since the global financial crisis, with significant acquisitions like Smith Barney and E*Trade [3] - The bank is set to report its first quarter earnings soon, which may provide further insights into its financial health amid the ongoing scrutiny [3] Stock Performance - Following a recent sell-off, Morgan Stanley shares fell 5.3% to $86.84, with an additional drop in after-hours trading [4] - Investors are advised to monitor the stock's ability to maintain support between $83 and $85, as it has previously shown a V-shaped recovery from below $70 [4]

Morgan Stanley is reportedly facing investigations by several agencies into how its wealth management division vets and monitors clients who may pose money-laundering risks.The Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency (OCC), the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC) and the Federal Reserve are probing the bank, The Wall Street Journal (WSJ) reported Thursday (April 11), citing unnamed sources.The activity of ...

Anti-money laundering (AML) defenses might begin at the point of onboarding.The needs are for all manner of firms — and especially banks and investment management companies — to embrace technology in the service of beefing up their onboarding processes and automating them too.    Media sites including The Wall Street Journal (WSJ) reported Thursday that U.S. regulators are examining Morgan Stanley’s anti-money laundering efforts.The scrutiny comes from a broad range of regulators, ranging from the Securitie ...

Morgan Stanley stock tumbled Thursday after the Wall Street Journal reported that the bank's wealth arm faces multiple federal probes over its client-vetting practices and potential money laundering risks.X The Securities and Exchange Commission, the Office of the Comptroller of the Currency, and Treasury Department officials are involved in the investigation, the WSJ reported, citing unnamed sources. The latest round of scrutiny comes after the Federal Reserve in November launched a similar probe.The regul ...

Core Viewpoint - Morgan Stanley's wealth management division is under investigation by multiple regulators regarding its client identity verification and monitoring practices [1][1][1] Regulatory Involvement - The investigation involves the Securities and Exchange Commission, the Office of the Comptroller of the Currency, and other offices within the Treasury Department [1][1][1] Key Issues Under Investigation - The main focus is on whether Morgan Stanley has adequately investigated the identities of prospective clients and the sources of their wealth [1][1][1] - Additional scrutiny is directed towards the bank's monitoring of financial activities, particularly concerning international clients [1][1][1] Market Reaction - Following the news, Morgan Stanley's shares experienced a decline of 4.5% on Thursday [1][1][1]

Core Insights - Wall Street analysts expect Morgan Stanley to report quarterly earnings of $1.69 per share, reflecting a year-over-year decline of 0.6% [1] - Revenues are anticipated to be $14.47 billion, down 0.3% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - 'Net revenues- Investment Management' are projected to be $1.41 billion, indicating a year-over-year increase of 9.1% [2] - 'Net revenues- Institutional Securities' are expected to reach $6.38 billion, reflecting a year-over-year decline of 6.1% [2] - 'Revenues- Wealth Management- Net interest income' is estimated at $1.84 billion, down 15% from the prior-year quarter [2] Key Metrics - 'Revenues- Institutional securities- Investment banking- Underwriting' is forecasted at $741.89 million, showing a year-over-year increase of 21.8% [3] - 'Book value per common share' is expected to be $53.22, down from $55.13 in the same quarter last year [3] - 'Return on average common equity' is projected to be 12.0%, compared to 12.4% a year ago [3] Assets and Ratios - 'Wealth Management - Total client assets' is likely to reach $5,104.90 billion, up from $4,558 billion in the same quarter last year [3] - 'Total assets under management' is estimated at $1,459.92 billion, compared to $1,362 billion a year ago [3] - 'Assets under management - Fixed income' is expected to be $173.15 billion, slightly down from $175 billion last year [4] - 'Assets under management - Equity' is projected at $294.72 billion, up from $277 billion in the same quarter last year [4] - The consensus estimate for 'Tier 1 Leverage Ratio' is 6.8%, compared to 6.7% last year [4] - 'Tier 1 Capital Ratio' is expected to be 17.2%, slightly up from 17% a year ago [4] Stock Performance - Shares of Morgan Stanley have increased by 2.6% in the past month, outperforming the Zacks S&P 500 composite, which moved up by 0.8% [4]

Wall Street expects a year-over-year decline in earnings on lower revenues when Morgan Stanley (MS) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 16, 2024, might help the stock move higher if these key numbers are better than expect ...

Morgan Stanley (MS) ended the recent trading session at $93, demonstrating a +0.31% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.23%.Prior to today's trading, shares of the investment bank had gained 4.02% over the past month. This has outpaced the Finance sector's gain of 2.37% and the S&P 500's gain of 1.5% in that time.The investment commun ...

Company Performance - Morgan Stanley's stock closed at $91.95, reflecting a -1.55% change from the previous day, underperforming the S&P 500's -0.14% [1] - Over the past month, Morgan Stanley's shares have increased by 8.79%, outperforming the Finance sector's 4.92% and the S&P 500's 5.34% [1] - The upcoming earnings report is scheduled for April 16, 2024, with expected EPS of $1.70, unchanged from the prior year, and a revenue estimate of $14.41 billion, indicating a 0.73% decrease year-over-year [1] Earnings Estimates - For the full year, earnings are projected at $6.33 per share and revenue at $56.64 billion, representing increases of +15.93% and +4.62% respectively from the prior year [2] - Recent changes in analyst estimates reflect near-term business trends, with positive revisions indicating optimism regarding the company's profitability [2] Valuation Metrics - Morgan Stanley has a Forward P/E ratio of 14.76, which is lower than the industry average of 17.81, indicating it is trading at a discount [3] - The company has a PEG ratio of 1.9, compared to the Financial - Investment Bank industry's average PEG ratio of 1.21 [3] Industry Overview - The Financial - Investment Bank industry is currently ranked 16 in the Zacks Industry Rank, placing it in the top 7% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

Morgan Stanley (MS) closed the most recent trading day at $87.96, moving -0.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.The the stock of investment bank has risen by 2.17% in the past month, lagging the Finance sector's gain of 2.48% and overreaching the S&P 500's gain of 1.76%.Analysts and investors alike will be keeping a close eye on the performance of ...