Morgan Stanley posted a first-quarter loss that was much wider than analysts expected; it also slashed its dividend.
But CNBC's David Faber reports that there's more to the story than what's on the surface.
"There are things [bank earnings and guidance] we've talked about that weren't quite as good as they seemed," said Faber. "Now, here it's the opposite: not quite as bad as it seems."
Though Morgan reported losses in earnings per share and net income, and revenue came in less than expected, "a lot of that has to do with credit spreads," said Faber.
"For some time now, we've watched Citi have a significant gain on its credit spreads. In this case, though, it's a different story."
Specifically, Faber noted that in two different types of asset ratios, Morgan Stanley looks better than JPMorgan Chase and Wells Fargo.
Watch the video above for more from this Faber Report.
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