Morgan Stanley (MS) reports strong third-quarter profits and this could be attributed to the changes put in place by its chief executive John J. Mack. Earnings for the company rose 59 percent, to $1.85 billion with the latest gains coming from a powerful performance from the firm's commodities trading desk and lower compensation costs.
The NYTimes.com states that one of Mr. Mack’s first actions when he became chief executive more than a year ago was to allow his traders to take more risk and deploy more of the firm’s capital in doing so. That strategy seemed to pay off in the quarter.
Morgan Stanley’s major measures of profitability — profit margins and return on equity — exceeded those of its peers. The results exceeded analysts’ expectations, and the stock rose 50 cents, or 0.70 percent, to $72.35.
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