Jury Still Out on Morgan Stanley-Eaton Vance Deal: Mayo

The video discusses James Gorman's significant impact on Morgan Stanley, highlighting his role in transforming the business through strategic acquisitions. It contrasts the inexpensive acquisition of Smith Barney with the costly purchase of Eaton Vance, emphasizing the CEO's belief in paying for quality. The video also explores Morgan Stanley's strategic shift from optimization to growth by acquisition, noting the different skills required. Finally, it evaluates the potential value of the Eaton Vance acquisition, acknowledging the uncertainty of its success.

What was a significant move by James Gorman in transforming Morgan Stanley's business mix?

• Merger with Goldman Sachs

• Acquisition of Smith Barney

• Partnership with JP Morgan

• Acquisition of Eaton Vance

How does the acquisition of Eaton Vance differ from that of Smith Barney?

• Smith Barney was not a strategic move

• Eaton Vance was less expensive

• Eaton Vance was more expensive

• Smith Barney was a larger acquisition

According to the CEO, why was the acquisition of Eaton Vance justified despite its cost?

• It was a competitive move against rivals

• It was a government mandate

• It was a quality firm worth the price

• It was a strategic necessity

What is the potential impact of the Eaton Vance acquisition on Morgan Stanley's asset management business?

• It will immediately add value

• It is expected to be a make or break deal

• It is not significant for the asset management business

• It is large for the asset management business

What is the general sentiment about the value addition of the Eaton Vance acquisition?

• It will definitely not add value

• The jury is still out on its value addition

• It is guaranteed to add value

• It is expected to fail