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FBN’s Charlie Gasparino with the highlights from his interview with Morgan Stanley CEO James Gorman.
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James Gorman.
Charlie joins us now with the highlights and I understand has quite a challenge just get this interview on that -- -- great -- -- let you know who did -- -- greater you know he and I know each other for a long time this I think this is part of building a network in -- I'm saying we we start from zero and you build up and I think now who you know we are now we have we have credibility on Wall Street that's part of it and I think.
We -- I also have kind of a pretty good hammer I know how to cover companies and -- one thing or two separate that he has so it's well they're very connected again is it.
And one of the things -- like that James is that.
Of all the CEOs I know you know and you know I I greatly by Jamie Dimon and many many of them I'm I'm not an -- I'd -- break -- thousand.
More than any of these other dopey reporters Matt -- -- these guys these guys hate me because or despite some work ready but I didn't.
I've been covering them in a tough way for many for a long time that doesn't mean I don't personally liked him and think they're the -- of -- evil which they're not.
Well -- -- James Gorman is that you know he is a regular guy and he's just very very Smart -- guy.
And I think yes and interest in goals for this firm one of the big goals is to transform Morgan Stanley away from the risk taking.
Into this sort of upscale wealth management firm.
Both for institutions where you're company they have a very good investment bank -- do the Yemeni work for you as you know there.
Underwriting tac huge intact -- to FaceBook IPO having a very Smart -- Paul Taubman who runs that -- part of the business.
And then they also.
Wanna be your wealth manager if you have individual brokerage service like you know -- individual investors watch a -- brokers they have more brokers.
Than anybody there integrating the Smith Barney brokerage firm.
Into the Morgan Stanley it was an agreement that that Citigroup made with them back in 2009.
About by about bored -- -- the Smith Barney brokerage which is fairly -- and integrating with the existing brokerage now they have.
It when that once they do this they're gonna finish I think the integration the unofficial integration sometime this year but is a process of a buying had over many years.
There was talk about him buying all of -- and not just for the peace there's there are scheduled to get but all of it in mid eighty.
Here's what he had to say about that.
We have a very clear timeframe.
Next month Ford -- percent a year from -- -- 10% a year after that 20%.
So what I -- is we will follow that timeframe so you're not gonna -- the plan where are we always happy to listen.
If somebody wanted to accelerate that but we still -- components you're not gonna initiate those talks if they come to you is what you're saying you're ready to the only hope we will initiate is to exercise I call up some might that he knows -- not -- Vikram Pandit.
He's got to ask you not I just said the only.
Exercise -- -- is the call option so it's it sounds like it's off the table buying at all I didn't Charlie it's it's never been on the table.
It's been the media speculating how -- you know you talked about it for a week we have we have a game plan to buy -- fifteen and twenty.
It would take something extraordinary -- because so I can't plan.
There you go guys don't ask a follow up question -- child I did that is a fairly in a big news story that -- everybody's been talking -- -- deployment internally don't you know he's playing around a little there.
That they wanted to buy at all they would have to spend ten billion dollars and -- -- old now.
He's basically said that it would take something extraordinary to do that why is that now here's part of the speculation.
There are under review to be downgraded by by a buy rating agencies they may go down three notches he actually correct and at the exit to it was actually three.
But I class -- yes he can correct me and don't want to -- but.
But but.
Remember if they're spending in -- ten billion.
Then you -- you go down tree probably and I think that's what came here and which you see there is James Gorman at least moving away from the notion of buying it all.
Never say it's off the table but he's facing I don't know what you're saying the -- -- -- yeah I don't wanna I don't wanna like you know who knows something.
He said it would take something extraordinary maybe -- destroyed because.
But I doubt -- that's a fairly big story no other network got him to fess up you know he talked around it.
And I see -- and that's one of the good things about the Fox Business Network and people like us we've all been here while.
We can talk to these guys have a certain way we -- -- hit their buttons where they will tell the investors something.
That they won't get from someplace else and -- -- make a case to buy buy the stock or not Morgan Stanley he thinks it's a buy was up more -- today in the earnings right if it was up like seventeen cents.
He -- a long term buy by any number of reasons.
And the -- spend that ten billion dollars immediately that has changed the picture may -- doesn't get you're not down to three notches on the on on a -- that he does expect the learn to live at the company today thanks to try and abdomen.
