Goldman Profit Tops Estimates as Dealmaking Cushions Hit From GreenSky, Real Estate

Morgan Stanley profit drops despite strong wealth management numbers as investment banking fees fall sharply.

Morgan Stanley reported a 27% drop in investment banking revenue in Q3, the biggest decline on Wall Street, while Goldman Sachs' advisory business shrank 15%.
Goldman Sachs' profit surpassed predictions for the third quarter, primarily supported by a minor upturn in market deal activity, despite a 36% drop due to losses in the GreenSky fintech business and real estate investments.
Morgan Stanley's Q3 profits were lowered by 9% due to poor results in the wealth management and investment banking divisions; its stock fell 8% after the announcement.
Morgan Stanley is grappling with higher compensation costs in its wealth management division, which resulted in a $200 million revenue shortfall for the quarter.
Shares in both Morgan Stanley and Goldman Sachs dropped significantly after they announced their lukewarm Q3 earnings.