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I just with his thoughts on the financial earnings in the outlook for the big banks gonna see him perhaps thank you for having let's talk about a couple of companies -- particular Morgan Stanley.
Law allow profit six what is 66%.
In the last quarter.
They have been focusing narrowly on their niche which is a great initially -- they're finished here.
Buyout of Smith Barney from city.
And then you have black rock black -- also had huge -- 30% profits right.
They have cornered the markets on the ETF markets they're very good at these exchange traded funds you there you go almost exclusively to black -- to -- in the do you have.
Is what we're seeing now a consolidation.
Of banks focusing.
On what they do best is finally settling into their proper niches but we don't have to -- we don't have banks that are that are that are totally focused.
Yet right but Morgan Stanley is an example right here you're you're right Morgan Stanley said -- -- going to be the new Merrill Lynch so -- that was back in 2009.
And we've all been waiting right so they by Smith Barney they try to put it together they have all these disappointments along the way.
This quarter it looks like it's all coming together so the chairman was doing victory laps and and in terms of the performance.
What would of Merrill Lynch -- a Merrill Lynch will be a company that will outperform.
When the retail investor comes back.
And -- -- -- there were -- I'm -- Merrill -- -- Morgan -- right right so Morgan Stanley in terms of that of the cycle -- -- is going to do is gonna do well when they come back and that probably is -- 20142015.
-- into this event so we're really talking about the early stage of retail retails correlated with employment -- -- you know when unemployment.
Retail investors begin to melt -- -- a silver and come back into the stock market.
Okay that was my plan tomorrow up.
The second Morgan Stanley about UBS what is they've been focusing on -- James Gorman said the same thing he wanted to focus on high net worth individuals and managing of their money.
Big though can't compete with the Wells Fargo has seems to be -- it out when it comes.
Loan origination mortgages in this country's I think to David's point you do see some knuckle balls -- who wants to compete with Wells Fargo.
Well very different mixes right so we think of a Wells Fargo we think of a business that's a mortgage origination business you know that's rates rising it's not good for mortgage origination.
The but remember they have the -- -- wealth management business which is number three number one is Morgan Stanley number two is the is Merrill Lynch at Bank of America.
Unfortunately these wealth management businesses are part of much more diverse organizations so it's difficult to believe that the wealth management business at and at wells.
There's going to be able to.
Increase its revenues enough to offset what would be a weakening on on the mortgage origination side so -- it costs almost -- you might be the first person this week it's actually sent a little bit of something -- about -- well -- you -- bring you won't notice what they did they don't they recognize rising rate slows down doesn't slowed down right away.
It started expense control.
And that's that that's is a reason why a management team begins to push on expense controls because they see that at least a portion of the cycle -- now.
The good part about Wells Fargo is they're pushing into the institutional business you never think of Wells Fargo as an investment bank.
But they're taking share.
They're grow they're using that big balance sheet that lending balance sheet.
Begin to push into GPM's business right JPM the big investment banker except.
We're seeing these guys beginning to.
To move back and forth among themselves well also mortgage player that's the way the market thinks of them JPM investment banking player right now a little bit on the mortgage side.
Goldman Sachs investment bank went about Bank of America Bank of America particularly retail revenues what do you think of that -- Now they are the competitor for for Morgan Stanley in the wealth management business.
One -- to think of BankAmerica.
One of the challenges here having is not the wealth management -- it's doing fine.
We're beginning we're seeing losing market share and cross and all -- institutional businesses since the crisis which really says that.
Bank of America has carved -- -- world says we're retail.
We're retail banking were retail wealth so again focusing on what they do -- exactly.
And so that's sort of you know these things but there I guess I'd -- good does that mean that the Bank of America is a bar or is it away and -- it is this it it is a -- but it's a bind because of all the expenses that they're taking out the integration is still going on at Bank of America.
They're past the worst in the credit cycle.
It is a great power you know if you're -- -- distribute product in North America financial product you're gonna go to Bank of America.
Brett can't get to see pictures acknowledged it but thanks again thank you very good overview than what --
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