We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.
Newsroom
Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.
HL Podcast
HL Insight
Morgan Stanley's outgoing CEO James Gorman said financial markets will 'take off' once investors are sure the Federal Reserve has finished raising interest rates, the Financial Times reported on Friday.
Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.
Published by
22 Dec 2023
«The shock of the rate increase recently has put a damper on banking deals (and) capital markets deals. And that is (because) everybody doesn't really know what their cost of financing is,» Gorman told the FT.
«The minute the Federal Reserve has concretely signalled that they've stopped raising rates, let alone the point at which they first do a rate cut, these markets will take off,» he said.
Gorman will step down as CEO of the company on Jan. 1, handing the reins to Ted Pick.
New rules since the 2008 financial crisis requiring banks to hold more capital and exit riskier activities has made the system much safer, Gorman told FT, adding that «their own stupidity» is one of the biggest threats banks face.
Gorman also claimed the high-profile failures of three regional U.S. banks this year were «entirely their own doing,» adding that Credit Suisse
Read more on hl.co.uk