GS vs. MS: A Zero Sum Game?
An argument can be made that the SEC fraud suit against GS and the PR debacle that has been hitting the financial institution over the past year or so may be beneficial to MS, the former's principal competitor. To the extent that these matters reduce the amount of business that investors and other entities choose to conduct with GS, this development should afford an opportunity for MS to pick-up some market share. A few percentage points in the league tables for securities issuance and M&A translate into significant dollars in increased revenues. Given the amount of money that MS lost in the MBS area, it doesn't seem likely to me that it will face the same charges as GS.