They were not making much of a profit due to the costly acquisition of smith Barney and the conversion of millions of Smith Barney accounts to the Morgan Stanley platform. This was a substantial drag on earnings over the last few years. The conversion of data was recently completed and operating costs are set to drop substantially over coming quarters. This will drive up earnings per share and valuation. Morgan Stanley also generates more than half it's revenue from wealth management and as the equity markets rise revenues and margins improve. MS is a strong buy at current levels.