Morgan Stanley

RANK204

What pandemic? Morgan Stanley appeared to weather the shutdowns seamlessly, even though CEO James Gorman was diagnosed with the coronavirus in March 2020. Boosted by surging capital markets (and without a consumer business to weigh it down during the lockdowns), revenue rose 16% to $48.2 million. The strong results seem validation of the bank’s decisions to spend billions of dollars doubling down on its brokerage and wealth management segments: In 2020, the bank acquired digital brokerage E*Trade for $13 billion and announced plans to acquire investment management firm Eaton Vance for $7 billion. The company’s upward trajectory hasn’t exactly been consistent, however. The bank lost about $911 million in the first quarter of 2021 owing to the collapse of family office Archegos Capital Management. While the firm still posted a record profit for the quarter, the incident is likely to present further challenges as regulators prod why financiers (including Morgan Stanley) had so much riding on a single client.