1 hr 3 min
CEO James Gorman's Departure Could Tear Morgan Stanley Apart, Ignite Feuds. JP Morgan Sits Atop $1.4 Trillion in Cash & Securities. KeyCorp's Outlook. Rising Stock Market Linked to Debt Ceiling Crisis ODEON CAPITAL CONVERSATIONS
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- Business News
After 13 years at the helm of Morgan Stanley, JAMES GORMAN plans to step down as CEO within 12 months. He will remain as executive chairman. DICK BOVE, chief financial strategist at ODEON CAPITAL GROUP, says GORMAN'S departure is a major "blow" to Morgan Stanley. "To lose someone with his capabilities would be like JAMIE DIMON walking out of JP Morgan," says BOVE, referring to JP Morgan's highly-regarded CEO. While Morgan Stanley has not yet named a successor, three division heads have been identified as contendors. BOVE though has a warning. "If they actually let this succession fight last for a year," he says, "I think they will destroy big parts of Morgan Staney." BOVE looks back on an earlier succession battle, a brutual two-year affair at Citibank for insights on what could happen at Morgan Stanley. "Morgan Stanley's history suggests that it could easily go in this direction," according to BOVE.
BOVE also looks at regional bank, KeyCorp, comparing its near and long-term outlook, noting how it is in positioned in the Midwest to benefit from the "inevitable reindustrialization" of America. It is also a source of funding for domestic energy resources. Also on his radar is PacWest, a Beverly Hills, CA-based bank that BOVE says is fighting for its very survival. Elsewhere, the CONVERSATION studies the latest Fed survey on US bank money flows, which shows the industry continues to see a decline in loans and deposits. Meanwhile, a link between the debt ceiling crisis and the rising stock market is suggested. MAT VAN ALSTYNE, ODEON co-founder and managing partner, explains how the crisis could actually be fuelling a rise in equities. And we'll have an update on how US banks with operations in China are scaling back and firing staff. Joining the CONVERSATION is our host, JOHN AIDAN BYRNE.
Questions & Comments: Podcast@OdeonCap.com
After 13 years at the helm of Morgan Stanley, JAMES GORMAN plans to step down as CEO within 12 months. He will remain as executive chairman. DICK BOVE, chief financial strategist at ODEON CAPITAL GROUP, says GORMAN'S departure is a major "blow" to Morgan Stanley. "To lose someone with his capabilities would be like JAMIE DIMON walking out of JP Morgan," says BOVE, referring to JP Morgan's highly-regarded CEO. While Morgan Stanley has not yet named a successor, three division heads have been identified as contendors. BOVE though has a warning. "If they actually let this succession fight last for a year," he says, "I think they will destroy big parts of Morgan Staney." BOVE looks back on an earlier succession battle, a brutual two-year affair at Citibank for insights on what could happen at Morgan Stanley. "Morgan Stanley's history suggests that it could easily go in this direction," according to BOVE.
BOVE also looks at regional bank, KeyCorp, comparing its near and long-term outlook, noting how it is in positioned in the Midwest to benefit from the "inevitable reindustrialization" of America. It is also a source of funding for domestic energy resources. Also on his radar is PacWest, a Beverly Hills, CA-based bank that BOVE says is fighting for its very survival. Elsewhere, the CONVERSATION studies the latest Fed survey on US bank money flows, which shows the industry continues to see a decline in loans and deposits. Meanwhile, a link between the debt ceiling crisis and the rising stock market is suggested. MAT VAN ALSTYNE, ODEON co-founder and managing partner, explains how the crisis could actually be fuelling a rise in equities. And we'll have an update on how US banks with operations in China are scaling back and firing staff. Joining the CONVERSATION is our host, JOHN AIDAN BYRNE.
Questions & Comments: Podcast@OdeonCap.com
1 hr 3 min