According to a Reuters report released on Monday, Morgan Stanley (MS) has hired two new advisors, Robert Tholl and Jerry Pearson, from JPMorgan Private Wealth Management, a wing of JPMorgan Chase & Co. (JPM). This was done in an attempt to increase the efficiency of its Morgan Stanley Smith Barney (MSSB) joint venture. Both managers will take lead of the company’s Michigan office.
 
In May 2009, Morgan Stanley and Citigroup Inc. (C) combined Morgan Stanley’s Global Wealth Management Group and Citigroup’s Smith Barney, Quilter in the U.K., and Smith Barney Australia into a new joint venture called Morgan Stanley Smith Barney. The joint venture is the industry’s leading wealth management business. The merger increased Morgan Stanley’s cost and operational efficiencies by approximately $1.1 billion in fractions.
 
However, in another instance, Kevin Whitehead, complex manager heading the three offices in St Louis departed from Morgan Stanley in order to join Wells Fargo Advisors, a wing of Wells Fargo & Co. (WFC). Kevin will head all of 13 offices of Wells Fargo in the St Louis area while Morgan Stanley has started a search for his replacement.
 
Nabbing efficient staff of rival firms has been an old custom in the corporate organizations across industries. However, sometimes a firm has to pay hard for losing a business generating employee. Nevertheless, we believe that Morgan Stanley is sturdy enough to absorb such staffing bumpers. Going forward, the company continues to act judiciously to mitigate the financial risk and enhance its operating leverage.
 
The current sluggish economic recovery has limited the company’s scope for historically high growth rates. However, as the economy rebounds in the long term, Morgan Stanley can realize the full benefits of its strategic initiatives such as disciplined risk taking, addition of new talent and the continued integration of the Morgan Stanley Smith Barney joint venture.
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Read the full analyst report on “C”
Read the full analyst report on “JPM”
Read the full analyst report on “WFC”
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