- Morgan Stanley CEO James Gorman told CNBC on Thursday that he thinks that “through the end of next year we’re going to be working through this global recession.”
- His comments came after Morgan Stanley reported mixed results amid the coronavirus pandemic.
- He also said he thinks a recovery would be U-shaped.
- Visit Business Insider’s homepage for more stories.
A coronavirus-induced recession could last through 2021, according to Morgan Stanley CEO James Gorman.
“I think, you know, through the end of next year we’re going to be working through this global recession,” Gorman told CNBC in a Thursday interview.
He said that while he wishes and hopes for a V-shaped recovery, he does not expect one. “You can’t have this kind of dislocation and expect people to bounce immediately,” he said, adding that “this is not going to turn on a dime.”
The best-case scenario is a U-shaped recovery, Gorman said. “If I were a betting man, it’s somewhere between a U and I guess an L,” he said, adding that it’s likely that reopening the economy will take months.
Gorman’s comments followed Morgan Stanley’s first-quarter earnings release early Thursday. The bank’s earnings dropped, but trading revenue was strong in the quarter.
“We have witnessed more market volatility, uncertainty and anxiety as a result of the devastating COVID-19 than at any time since the financial crisis,” Gorman said in the earnings statement.
He continued: “While it’s too early to predict how this will unfold, Morgan Stanley navigated the quarter well given the conditions, and our results bear testament to the strength of our balanced business model.”
Morgan Stanley was the last of the big banks to report its quarterly results. Goldman Sachs, Citigroup, JPMorgan, Bank of America, and Wells Fargo also reported lower profits amid the coronavirus pandemic.
Leave a Reply
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
