The new Morgan Stanley CEO is optimistic about achieving financial goals.

• On Thursday, Ted Pick, the new CEO of Morgan Stanley, expressed confidence that the bank would achieve its financial targets of having $10 trillion in client assets and a 20% return.
• The new CEO, a 30-year Morgan Stanley veteran, has three priorities: adhering to the strategy of his predecessor, preserving the bank's culture, and meeting their targets.

On Thursday, Ted Pick, the new CEO of the bank, expressed confidence that the bank would achieve its financial targets of $10 trillion in client assets and a 20% return.

The new CEO, a 30-year Morgan Stanley veteran, has three priorities: adhering to the strategy of his predecessor, preserving the bank's culture, and meeting their targets.

In a CNBC interview at the World Economic Forum in Davos, Switzerland, Pick stated that he expects $10 trillion in wealth and asset management dollars to come. He believes that they will achieve 20% returns and that it will take some time to get there, but he is very optimistic.

Morgan Stanley was rescued from near collapse during the 2008 financial crisis by its predecessor, who then transformed the firm into a wealth management powerhouse through strategic acquisitions. Gorman also helped revive the bank's trading businesses for a new era on Wall Street.

Morgan Stanley's valuation surpassed competitors due to its pivot to wealth management, but recent growth concerns have hindered the stock's performance, causing a 12% decline in share value over the past year.

"The boss's success can be attributed to his ability to steer the company towards a cohesive narrative, rather than the erratic and unstable nature of Morgan Stanley," Pick stated.

The secret to the firm's success lies in the blend of its investment banking and wealth management divisions, he stated.

Balancing realistic expectations and building credibility is crucial, but it's important to convey our confidence in achieving both, Pick stated. The unique ecosystem of being a leading wealth manager, banking individuals not institutions, and covering them as an investment bank or hedging risk as a trading house is what sets us apart.

An expected increase in corporate mergers and related activities this year may help alleviate the depressed volumes that have persisted for over a year, according to Pick. Since the start of the Covid pandemic in 2020, a backlog of deals has been accumulating.

"Once individuals begin to become active, we can expect a significant amount of activity," Pick stated.

It is likely that the U.S. economy has surpassed its peak inflation rate, and there is a possibility that the Federal Reserve may need to reduce interest rates more quickly than expected due to weakening data, according to Pick.