Good morning. Morgan Stanley had an impressive second quarter: revenue reached $21.3 billion, up 27%, while diluted EPS rose 58% on strong growth in investment banking and trading. But CFO Sharon Yeshaya framed the quarter as more than a result of favorable market conditions. She pointed to a broader strategy: using corporate relationships created through investment banking to drive recurring wealth management revenue.
The headline deal of Q2 was SpaceX. Morgan Stanley and Goldman Sachs led the SpaceX IPO in June as joint lead underwriters, with Goldman Sachs securing the “lead left” spot despite a significant role for Morgan Stanley’s Michael Grimes. But the deal also highlighted a broader playbook for Morgan Stanley: investment banking opens the relationship, while wealth management captures the long-term opportunity.
