Morgan Stanley profit down with lower investment banking revenue shares tank

Morgan Stanley reported a third-quarter profit that was impacted by a slowdown in dealmaking, leading to a 7.4% drop in the bank’s shares. The bank experienced a notable decrease in investment banking revenues and slow trading activity, especially due to geopolitical risk tied to the conflict in Ukraine and the Federal Reserve’s interest rate hikes. Analysts cited a fall in net new assets in Morgan Stanley’s wealth division, with a drop from $64.8 billion to $35.7 billion. Moreover, disappointment arose from the lack of news about CEO succession. CEO James Gorman, who announced he would step down within a year, has not yet named his successor.