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Street Survivor – Morgan Stanley

Financials still have a long way to go to get back to their pre-Lehman levels. Can the following Street survivor help the sector make a full recovery?

We’re talking about Morgan Stanley - standing strong since 1935 it was a nearly a casualty itself of the Wall Street crisis.

But after the dust settled and it was certain that Morgan would live to fight another day CEO John Mack decided not to take any chances. As words like "leverage" and "risk" became dirty words, Mack played it safe.

As it turned out, "better safe than sorry" was the wrong playbook and Morgan missed out on the market rally of a lifetime.

While the Goldman guys were celebrating record profits Mack posted 3 straight quarterly losses and eventually got the knife.

Taking the helm now, is heir apparent James Gorman. And while some applaud the move, his lack of experience leaves others market mavens shaking their heads.

“The one concern I have with him, and I don't think it's a new concern, is that he really does lack experience on the institutional side of the business,” Sandler O’Neil analyst Jeff Harte says.

Can Morgan Stanley's new captain turn this ship around?

See what the Fast Money traders have to say. Watch the video now.


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Trader disclosure: On Sept. 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (F); Terranova Owns (F) Calls And (F) Puts; Terranova Works For (VRTS); Najarian Owns (ACI) Call Spread; Najarian Owns (C) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (ERTS) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (PALM) Calls; Najarian Owns (ORCL); Najarian Owns (TEVA); Najarian Owns (V) And (V) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT), (BDX); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman Owns (RIG); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (BAC), (RIG), (SBUX), (FXI), (F), (TTM)

For Jim Suva
Citigroup Owns (PALM)
Citigroup Has Received Compensation From (PALM)
Citigroup Is A Market Market In Securities of (PALM)
Citigroup Is A Market Market In Securities of (RIMM)

For Dennis Gartman
Gartman Owns Gold



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