- Morgan Stanley (MS -5.5%) led the banking sector down as Italy's political drama reverberated in global markets. In trade news, the U.S. is proceeding with its threat to apply tariffs on Chinese imports, the Wall Street Journal says.
- MS fell more than most. Andy Saperstein, co-head of the bank's wealth management unit, says he sees "headwinds' in transaction revenue because activity slowed in March and remained slower in April and May, CNBC reports, citing Saperstein's comments at a New York conference today.
- MS interest expense will increase as it diversifies its deposit sources, which in turn, will slow the growth of net interest income, Saperstein said.
- About half of Morgan Stanley's revenue comes from its wealth management unit.
- Other banks also felt the pain resulting from today's global economic news: Bank of America (BAC -3.8%), Citigroup (C -3.9%), JPMorgan (JPM -4.2%), Wells Fargo (WFC -3.3%), and Goldman Sachs (GS -3.3%).
- Previously: U.S. banks take a hit as investors fret over Italy and Spain (May 29)
- Now read: Wells Fargo: Only Buy On Weakness
Original article