|
 NEW YORK (AP) - Morgan Stanley became the fourth major investment bank to post record first-quarter revenue — and the latest beneficiary of the stock market's strong start to 2006.
Yet Morgan Stanley and its rivals relied heavily on their own trading efforts for their record results, which makes their future earnings vulnerable to the vagaries of the stock markets.
"You look at Morgan Stanley and its peers, you see a lot of reliance on their proprietary trading desks and a willingness to take on more risk," said David Easthope, an analyst with the financial industry research firm Celent. "If the markets are reaching a cyclical peak, which I think they are, profits are at risk when the economy slows down."
|