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Morgan Stanley overtakes arch-rival Goldman Sachs in equities trading

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Morgan Stanley overtakes arch-rival Goldman Sachs in equities trading

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Morgan Stanley overtook arch-rival Goldman Sachs in equities trading in the third quarter for the first time since 2022, helping the investment bank’s profits jump by almost half.

Morgan Stanley said on Wednesday that net income for the three months to the end of September was $4.6bn, more than $1bn better than analysts had expected.

The core Wall Street businesses of investment banking and trading have powered forecast-beating results across America’s biggest banks.

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Goldman, JPMorgan Chase, Bank of America, Citigroup and Wells Fargo have all surpassed expectations in the past two days on the strength of their investment banks.

In equities trading, Morgan Stanley generated revenues of $4.1bn, up 35 per cent from a year ago and ahead of the $3.7bn reported by Goldman on Tuesday.

Equities trading has been a key point of rivalry between the two investment banks, and this quarter marked the first time that Morgan Stanley had out-earned Goldman in the business since the final quarter of 2022. 

Morgan Stanley was traditionally the dominant force on Wall Street in stock trading.

But it ceded that position to Goldman after it sustained heavy losses tied to investment firm Archegos Capital Management, and it has made a concerted effort to regain its top position under chief executive Ted Pick, who took over from James Gorman at the start of 2024. 

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“We’re trying to create a more durable business,” Morgan Stanley chief financial officer Sharon Yeshaya told the Financial Times.

“Part of that comes from the lending and the prime brokerage business associated with equities. And some of it comes from the relationships that we continue to build on the corporate side.”

Investment banking generated $2.1bn in revenues, a 44 per cent improvement on the same quarter last year, which was in line with Goldman.

Goldman reported a 43 per cent increase in investment banking revenues to $2.7bn on Tuesday, while JPMorgan could only manage more modest gains of 16 per cent to $2.6bn and Citigroup reported a 17 per cent rise to $1.2bn.

Yeshaya said the bank was at “record levels when you look at the pipeline and the backlog” of potential deals.

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Morgan Stanley’s wealth management business also performed far better than expected, drawing in net new assets of $81bn in the quarter compared with the $67bn investors were looking for.

The figure is followed closely by investors as a gauge of the business’s growth trajectory, with Morgan Stanley’s revenues split relatively evenly between its investment bank and wealth management divisions.

Morgan Stanley’s earnings came on the same day as Bank of America, which also trounced expectations for its investment bank. BofA reported a 43 per cent rise in investment banking fees to just over $2bn. Analysts had only expected the business to bring in $1.6bn.

BofA also reported an 11 per cent rise in revenues in its markets division to $6.2bn, helping lift the bank’s profits by almost a quarter from a year ago to $8.5bn.

Morgan Stanley and BofA shares were both up more than 4 per cent in pre-market trading.

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This article has been updated since publication to correct the revenue in BofA’s markets division.

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Map: 4.9-Magnitude Earthquake Shakes Louisiana

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Map: 4.9-Magnitude Earthquake Shakes Louisiana

Note: Map shows the area with a shake intensity of 4 or greater, which U.S.G.S. defines as “light,” though the earthquake may be felt outside the areas shown.  All times on the map are Central time. The New York Times

A light, 4.9-magnitude earthquake struck in Louisiana on Thursday, according to the United States Geological Survey.

The temblor happened at 5:30 a.m. Central time about 6 miles west of Edgefield, La., data from the agency shows.

U.S.G.S. data earlier reported that the magnitude was 4.4.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

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Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Central time. Shake data is as of Thursday, March 5 at 8:40 a.m. Eastern. Aftershocks data is as of Thursday, March 5 at 10:46 a.m. Eastern.

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Donald Trump has no ‘phase two’ plan for Iran war, says US senator

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Donald Trump has no ‘phase two’ plan for Iran war, says US senator

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Man accused of plot to assassinate Trump testifies Iran pressured him, says Biden and Haley were other possible targets

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Man accused of plot to assassinate Trump testifies Iran pressured him, says Biden and Haley were other possible targets

The allegation sounded like the stuff of spy movies: A Pakistani businessman trying to hire hit men, even handing them $5,000 in cash, to kill a U.S. politician on behalf of Iran ‘s powerful paramilitary Revolutionary Guard.

It was true, and potential targets of the 2024 scheme included now-President Donald Trump, then-President Joe Biden and former presidential candidate and ex-U.N. Ambassador Nikki Haley, the man told jurors at his attempted terrorism trial in New York on Wednesday. But he insisted his actions were driven by fear for loved ones in Iran, and he figured he’d be apprehended before anything came of the scheme.

“My family was under threat, and I had to do this,” the defendant, Asif Merchant, testified through an Urdu interpreter. “I was not wanting to do this so willingly.”

Merchant said he had anticipated getting arrested before anyone was killed, intended to cooperate with the U.S. government and had hoped that would help him get a green card.

U.S. authorities were, indeed, on to him – the supposed hit men he paid were actually undercover FBI agents – and he was arrested on July 12, 2024, a day before an unrelated attempt on Trump’s life in Butler, Pennsylvania.  During a search, investigators said they found a handwritten note that contained the codewords for the various aspects of the plot, CBS News previously reported

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Merchant did sit for voluntary FBI interviews, but he ultimately ended up with a trial, not a cooperation deal.

“You traveled to the United States for the purpose of hiring Mafia members to kill a politician, correct?” Assistant U.S. Attorney Nina Gupta asked during her turn questioning Merchant Wednesday in a Brooklyn federal court.

“That’s right,” Merchant replied, his demeanor as matter-of-fact as his testimony was unusual.

The trial is unfolding amid the less than week-old Iran war, which killed Iranian Supreme Leader Ayatollah Ali Khamenei in a strike that Trump summed up as “I got him before he got me.” Jurors are instructed to ignore news pertaining to the case.

The Iranian government has denied plotting to kill Trump or other U.S. officials.

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Merchant, 47, had a roughly 20-year banking career in Pakistan before getting involved in an array of businesses: clothing, car sales, banana exports, insulation imports. He openly has two families, one in Pakistan and the other in Iran – where, he said, he was introduced around the end of 2022 to a Revolutionary Guard intelligence operative. They initially spoke about getting involved in a hawala, an informal money transfer system, Merchant said.

Merchant testified that his periodic visits to the U.S. for his garment business piqued the interest of his Revolutionary Guard contact, who trained him on countersurveillance techniques.

The U.S. deems the Revolutionary Guard a “foreign terrorist organization.” Formally called the Islamic Revolutionary Guard Corps, the force has been prominent in Iran under Khamenei.

Merchant said the handler told him to seek U.S. residents interested in working for Iran. Then came another assignment: Look for a criminal to arrange protests, steal things, do some money laundering, “and maybe have somebody murdered,” Merchant recalled.

“He did not tell me exactly who it is, but he told me – he named three people: Donald Trump, Joe Biden and Nikki Haley,” he added.

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In 2024, multiple sources familiar with the investigation told CBS News Merchant planned to assassinate current and former government officials across the political spectrum.

Merchant allegedly sketched out the plot on a napkin inside his New York hotel room, prosecutors said, and told the individual “that there would be ‘security all around’ the person” they were planning to kill.

“No other option”

After U.S. immigration agents pulled Merchant aside at the Houston airport in April 2024, searched his possessions and asked about his travels to Iran, he concluded that he was under surveillance. But still he researched Trump rally locations, sketched out a plot for a shooting at a political rally, lined up the supposed hit men and scrambled together $5,000 from a cousin to pay them a “token of appreciation.”

This image provided by the Justice Department, contained in the complaint supporting the arrest warrant, shows Asif Merchant. 

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AP


He even reported back to his Revolutionary Guard contact, sending observations – fake, Merchant said – tucked into a book that he shipped to Iran through a series of intermediaries.

Merchant said he “had no other option” than to play along because the handler had indicated that he knew who Merchant’s Iranian relatives were and where they lived.

In a court filing this week, prosecutors noted that Merchant didn’t seek out law enforcement to help with his purported predicament before he was arrested. He testified that he couldn’t turn to authorities because his handler had people watching him.

Prosecutors also said that in his FBI interviews, Merchant “neglected to mention any facts that could have supported” an argument that he acted under duress.

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Merchant told jurors Wednesday that he didn’t think agents would believe his story, because their questions suggested “they think that I’m some type of super-spy.”

“And are you a super-spy?” defense lawyer Avraham Moskowitz asked.

“No,” Merchant said. “Absolutely not.”

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