Morgan Stanley reveals $911 million Archegos loss as profit jumps
By Elizabeth Dilts Marshall and Noor Zainab Hussain
Reuters
(Reuters) - Morgan Stanley lost nearly $1 billion from the collapse of family office Archegos Capital Management, the bank said on Friday, muddying its 150% jump in first-quarter profit that was powered by a boom in trading and deal-making.
Morgan Stanley was one of several banks that had exposure to Archegos, which defaulted on margin calls late last month and triggered a fire sale of stocks across Wall Street.
Morgan Stanley lost $644 million by selling stocks it held related to Archegos positions, and another $267 million trying to derisk them, Morgan Stanley Chief Executive James Gorman said on a call with analysts.
Morgan Stanley profit blows past estimates, flags credit event loss netscape.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from netscape.com Daily Mail and Mail on Sunday newspapers.
Morgan Stanley reveals $911 million Archegos loss as profit jumps
FILE PHOTO: A view of the Morgan Stanley London headquarters at Canary Wharf in London, Britain June 24, 2016. REUTERS/Russell Boyce/File Photo
April 16, 2021
By Elizabeth Dilts Marshall and Noor Zainab Hussain
(Reuters) -Morgan Stanley lost nearly $1 billion from the collapse of family office Archegos Capital Management, the bank said on Friday, muddying its 150% jump in first-quarter profit that was powered by a boom in trading and deal-making.
Morgan Stanley was one of several banks that had exposure to Archegos, which defaulted on margin calls late last month and triggered a fire sale of stocks across Wall Street.
Goldman Sachs profit soars on global deals frenzy, trading boom
By Anirban Sen, Matt Scuffham and Noor Zainab Hussain
Reuters
(Reuters) - Goldman Sachs Group Inc surged past Wall Street expectations for first-quarter profit on Wednesday, as the U.S. investment banking giant capitalized on record levels of global dealmaking and a coronavirus-driven boom in equity trading.
An unprecedented boom in private firms merging with listed shell companies to go public helped Goldman earn handsome fees from such deals, resulting in a 73% jump in revenue from investment banking to $3.77 billion.
Revenue from equities trading jumped 68% to $3.69 billion as heightened trading by ordinary investors fed stock market volatility.
Goldman Sachs profit soars on global deals frenzy, trading boom - Netscape Money & Business netscape.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from netscape.com Daily Mail and Mail on Sunday newspapers.