Bloomberg News

Morgan Stanley Had ‘De Minimis’ Commodities Revenue in Quarter

January 18, 2013

Morgan Stanley (MS:US), owner of the world’s biggest brokerage, had “de minimis” commodities revenue in the fourth quarter.

Fourth-quarter revenue from fixed-income and commodities sales and trading was $811 million, compared with a $493 million loss a year earlier, the New York-based company said today. Commodities revenue was “de minimis,” it said on a conference call with Chief Executive Officer James Gorman and Chief Financial Officer Ruth Porat.

“Commodities experienced meaningfully lower revenue in a difficult market,” Porat said on the call.

Commodities value-at-risk, a measure of how much the bank estimates it might lose in a single day, was $22 million, the same as in the third quarter, and down from $26 million a year earlier, Morgan Stanley said on its website.

Goldman Sachs Group Inc. (GS:US) said on Jan. 16 its net revenue in commodities were “significantly lower” in the fourth quarter. Its commodities value at risk was $20 million, down from $26 million a year earlier, it said on its website.

Morgan Stanley and Goldman Sachs, which previously dominated commodities trading among Wall Street banks, have lost ground to JPMorgan Chase & Co. and Barclays Plc, according to a Greenwich Associates survey published in March.

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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Companies Mentioned

  • MS
    (Morgan Stanley)
    • $35.3 USD
    • -0.32
    • -0.91%
  • GS
    (Goldman Sachs Group Inc/The)
    • $188.86 USD
    • -1.21
    • -0.64%
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