Back Office & Operations Prime Brokerage

Heavy lifting ahead

by

Faced with constraints on precious capital and a shrinking client base, prime brokers struggle to profit from an industry in flux.

Faced with constraints on precious capital and a shrinking client base, prime brokers struggle to profit from an industry in flux

By Josh Friedlander


After Lehman Brothers' catastrophic collapse last September, the financial markets grew so chaotic it seemed conceivable that even the two investment bank and prime brokerage leaders, Goldman Sachs and Morgan Stanley, could follow in Lehman's footsteps. In those crazy days last autumn, saber rattling or grandstanding wouldn't have been surprising. Yet Morgan Stanley's chief executive, John Mack, still managed to shock. Desperate to halt his stock's freefall,