The authoritative edition The Wall Street Journal published the information about the famous confrontation between two financial giants – Morgan Stanley and Goldman Sachs Group Inc. It is well known that the leadership of the first of them adheres to an extremely cautious course of action. But the second bank (Goldman Sachs Group Inc.) demonstrates a more liberal and flexible style of doing business.
Finally, more cautious tactics brought the result: for the first time in ten years Morgan Stanley has outperformed the Goldman Sachs Group in terms of capitalization.
Today, the capitalization of Morgan Stanley is estimated at 86.4 billion dollars. At the same time the capitalization of Goldman Sachs is approximately equal to 85.88 billion US dollars. Financial giants are almost neck in neck. The difference between the market value of the companies is about half a billion dollars.
About eight years ago, the situation looked completely different. The value of Goldman Sachs exceeded the cost of Morgan Stanley by 53 billion US dollars.
Both banks differently emerged from the 2008 crisis. The strong Goldman Sachs confidently went through the crisis, but in recent years the profits have been lost due to the tendency to complicate the regulation of trading operations as well as volatility weakening in financial markets.
The second bank – Morgan Stanley – got out of crisis with great losses and all these years preferred focusing on stable directions.
The financial performance of Goldman Sachs didn’t meet the investors’ expectations in contrast to Morgan Stanley; its results exceeded the most positive experts’ forecasts.
The material was prepared with the participation of Andrey Majorov,
a leading analyst of the brokerage company CT Trade