Proactive Investors - Morgan Stanley (NYSE:MS) is expected to post a year-on-year drop in both profit and revenue for the first quarter when it reports on its last quarter's financial performance on Tuesday, April 16.
The financial services firm is going into its earnings amid reports its client vetting practices are being probed by federal regulators, which saw the stock drop dramatically this week.
Per the report, the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and other Treasury Department offices are involved in the investigation and are assessing if the bank adequately looked into the identities of potential clients, the sources of their wealth and how it monitors their financial activity.
As a result, shares of Morgan Stanley (NYSE:MS) dropped 8% week-over-week and are down almost 9% in the year-to-date.
For Q1, the firm's earnings per share are expected to come in slightly lower than the year-ago quarter’s $1.70 at $1.69.
Revenue is seen dropping about 0.3% from $14.52 billion to $14.47 billion.