"We're going to work with the state to see if we can improve the security of this data transmission," Wiggins said. The discs were password-protected but not encrypted. The tax department did not return a call for comment. The company took two weeks to conduct an "exhaustive search" of all the facilities the package passed through, Wiggins said, and then mailed the letters to clients on June 24. The state notified Morgan Stanley Smith Barney about the lost data on June 8. It appears the package was intact when it reached the department, but by the time it arrived on the desk of its intended recipient the CDs were missing, Wiggins said. The company mailed the CDs containing information about investors in tax-exempt funds and bonds to the New York State Department of Taxation and Finance. "There's no evidence that there was any criminal intent here, or actual misuse of this information," Jim Wiggins, a spokesman for Morgan Stanley Smith Barney, said in a phone interview. The data was saved on two CD-ROMs that were protected by passwords, according to the letters, but the CDs were not encrypted. According to two letters sent to clients, and obtained by, the information includes clients' names, addresses, account and tax identification numbers, the income earned on the investments in 2010, and-for some clients-Social Security numbers. "I wouldn't be surprised if they went that route.July 6, 2011— - Personal information belonging to 34,000 investment clients of Morgan Stanley Smith Barney has been lost, and possibly stolen, in a data breach. "Goldman Sachs aren't precluded from doing things that are larger," he said. Their focus may soon change to growing via acquisition, Ryan said. The bank recently reshuffled the heads of his asset management and consumer and wealth management divisions. Meanwhile, at Morgan Stanley's rival Goldman Sachs, CEO David Solomon has been much more consumed by restructuring the businesses he already owns rather than buying new ones. "The only reason for a somewhat muted reaction today is that they're paying what appears to be full price, and the near-term economics are modest in terms of moving the needle." "They are acquiring a good asset in a difficult industry," said Devin Ryan, analyst at JMP Securities. The shift to inexpensive passive investments has forced seismic changes throughout the industry. "You've got to play the long game here."įor Eaton Vance, a medium-sized player that specializes in actively managed funds, the deal relieves pressure that all asset managers not named Vanguard, BlackRock or Fidelity face. If his company traded at the midpoint between the two categories, at around 14 or 15 times earnings, "this stock would be $100" instead of its current level of about $49, Gorman said. "And we're trading as though we're a pure trading business at about 9, 10 times earnings. "Our dear competitor Schwab, which is a great company, is I think trading at something like 20 times earnings at the moment," Gorman vented. All told, it will manage $4.4 trillion in client assets.īut investors have yet to recognize Morgan Stanley's transformation, Gorman said. When including its two recent acquisitions, Morgan Stanley would've generated $26 billion in wealth and investment management revenue in 2019, making it the biggest such company in the world by revenue, the bank says. "A decade ago, our asset management and wealth management businesses had bright spots in them, but they weren't big enough, they weren't at scale enough where they can provide real stability to the rest of the organization." "We wanted to make sure that in very difficult times Morgan Stanley is steady in the water," Gorman said Thursday in a call with analysts. Now, after $20 billion worth of recent deals, the bank will get well over half its revenue from fees related to wealth and investment management – owning a mutual fund factory with $1.2 trillion in assets and one of the world's biggest armies of financial advisors to distribute them. This year, Gorman went a step further, announcing the $13 billion takeover of discount brokerage E-Trade to further its reach with the mass affluent. The bank began that journey in early 2009 when Morgan Stanley purchased Smith Barney from Citigroup in the throes of the financial crisis, gaining thousands of financial advisors in the process. It completes Morgan Stanley's shift from being a firm dominated by traders and investment bankers to one where the more subdued and dependable management of money rules. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |