Morgan Stanley is the world's largest bank. It was founded by Henry Morgan in 1939, and in 2008 it was renamed a commercial bank. The main areas of his activity are operations with corporate securities, asset management, consumer lending (through the Discovery Card division). Offices and subsidiaries are represented in 42 countries of the world, including in the Russian Federation.
Background
In 1932, the Glass-Stigll Act entered into force in the United States, which prohibits banks from investing. As a result, JP Morgan & Co. I had to reorganize and create an institution engaged exclusively in investment activities. So, on September 16, 1935, Morgan Stanley Bank appeared in the USA.
Achievements
Over the years, the organization has developed not only investment activities, but also other areas:
- In 1964, MS created a model for analyzing the financial markets.
- In 1967, the bank opened its first branch in Paris. In the same year, a redemption transaction for Brooks Harvey & Co. took place. Inc., which allowed the financial institution to enter the real estate market.
- Since 1971, the bank began work in the field of exchange trading and, after 15 years, placed its own shares in the primary market.
- In 1997, a merger with Dean Witter Discover, which was engaged in the issuance of bank cards and the provision of brokerage services. Subsequently, the credit institution used these payment instruments to provide consumer loans. But in December 2006, Morgan Stanley Bank announced the launch of the Discovery Card in a separate company.
2008 financial crisis
Morgan Stanley is one of the affected institutions from the 2008 crisis . Investments in hedge funds for 2 weeks brought $ 128.1 billion in losses. Then, a Fed loan of $ 107.3 billion helped the bank avoid bankruptcy. In September of the same year, the Japanese bank Mitsubishi UF J Finance bought back a 21% stake in Morgan Stanley.
September 22, 2008, it was announced that MS would become a traditional banking corporation regulated by the Fed. In January 2009, Morgan Stanley, an American bank, joined Citigroup in organizing MSSB, a company that manages the capital of large customers. A large half of the shares (51%), as well as an option with the right to repurchase the remaining share belong to MS.
Morgan Stanley: RZB forecast
MS Bank has compiled a list of enterprises whose corporate rights have suffered as a result of the UK withdrawing from the EU. This decision caused a collapse in stock markets around the world. On June 24, investors began to sell their corporate rights in a panic, transferring investments into more secure assets. According to preliminary estimates, world markets lost $ 3 trillion.
Analysts compiled a list of organizations whose shares fell in price almost three times undeservedly. It included 28 companies, including those from large manufacturing enterprises from various sectors of the economy, whose activities are practically not affected by the European market.
For example, the corporate rights of Alphabet, owned by Google, fell in price by 4% ($ 685.2). According to analysts, the market price of stocks could rise to $ 856 per share due to the promotion of the advertising business and the preservation of Google’s advantages, which even the results of voting in the WB will not affect. Similar forecasts are presented in relation to Amazon.com and Apple, whose shares fell by 4.2 and 2.8%, respectively. In the future, the price may rise to 800 and $ 120 per share.
With regard to lower prices for the corporate rights of the automaker Ferrari, according to analysts, the decline will be offset by high volumes of exports outside the Eurozone. Candy maker Starbucks is also on the list. But for this company, “Morgan Stanley Bank” gives a positive forecast. The profit on sales in the British market was only 3% of total revenue. Therefore, the depreciation of the pound will not affect the financial results of the company.
However, lowering the price of corporate rights of global IT giants is a great opportunity for investors to purchase liquid securities at an attractive price. Those wishing to invest in the longer term can acquire the corporate rights of credit institutions. When the situation stabilizes, the shares of Morgan Stanley and Bank of America will rise in value.
Corporate rights of utility companies in the United States are undesirable. This investment makes sense only against the background of market volatility. They already show a high overbought level, and there is practically no growth potential.
Business liquidation
In 2015, an American bank agreed to sell Global Oil Merchanting divisions to Castleton CI LLC. Details of the transaction were not disclosed. It is only known that the price was in the range of 1-1.5 billion $. Participants have yet to obtain permission from US and EU regulators. Previous attempts by the financial institution to sell an asset have been frustrated. Including the transaction with JSC Rosneft did not take place.
Morgan Stanley Bank (Moscow)
Since 1994, Morgan Stanley has been operating in the domestic market in such areas as investment consulting, underwriting (placements of shares in Lukoil, Gazprom, AFK, Pyaterochka, Rosneft, Evraz, etc.) , development, provision of mortgages. In 2006, an American bank even participated in the organization of the City Mortgage Bank, but after a year and a half put up its assets for sale.
The Russian LLC Morgan Stanley Bank was registered in mid-2005. More than half of the assets (68%) belong to non-residents. The organization is aimed at working with legal entities. The Bank does not accept deposits of individuals, but shows high turnover on correspondent accounts, which, in turn, is reflected in high rates of business activity.
Areas of work
Morgan Stanley Bank operates through divisions and branches around the world, providing customers with a number of financial services, in particular:
- Corporate rights management: increasing capitalization (publication of shares, underwriter), advising (on mergers and acquisitions, restructuring, project financing), exchange activities, risk management, investment activities.
- Providing brokerage services and investment advice to private investors.
- Asset management of institutional and private individuals, operations with fixed income securities.
Analytics
In early 2016, an American bank sharply worsened the forecast for the ruble exchange rate. According to preliminary data, the dollar in the first quarter of 2016 was to amount to 82 rubles, in the second - 83 rubles, and in the third - 85 rubles. But with the increase in world oil prices, the Morgan Stanley forecast for the ruble in July was changed for the better. According to analysts, in 2016 the country's GDP will decrease by only 0.6%. This is due to the fact that the country's economy in the third quarter showed a zero growth rate, and in the fourth quarter it will begin to increase. Two cuts in the refinancing rate are expected to reach 9.5% by the end of this year.
Activities in the Russian Federation
The only office of Morgan Stanley Bank is located in Moscow. He has licenses of a professional participant in the securities market, permission to conduct banking operations, dealer, brokerage and depository activities. At the end of 2015, the bank’s assets amounted to 20.89 billion rubles, and equity amounted to 4.59 billion.
The main achievements in the work of the bank:
- 1996: Placement of Gazprom shares on foreign exchanges ($ 429 million).
- 2002: the bank participates in the issue of shares of Lukoil in the amount of $ 350 million.
- 2003 year:
- the financial statement is involved in the largest acquisition of TNK, BP and Sidanko ($ 6.75 billion);
- the financial institution provides the largest loan to Gazprom in the amount of $ 1.75 billion;
- the bank is involved in the sale of Telnor's 100% stake in Combelgi. - 2005: Morgan Seenley Bank acts as the main underwriter of AFK Sistema in the initial public offering of $ 1.55 billion; Pyatorochka - $ 598 million; Evraz - $ 422 million.