×

We're Optimistic About Economic Recovery: Morgan Stanley Exec

"We've actually come to a reasonable distance: healing in the financial system, healing across the general economy, unemployment is starting to come down again," said Greg Fleming, president, Morgan Stanley Investment Management.

"I am relatively optimistic about what we've come through in the last few years and where we are today," Fleming told CNBC on Tuesday. "Since the flash crash last May, there's been a much more sustained pickup in volumes across the marketplace, through the end of 2010 and into this year."

In 2009, Morgan Stanley and Citigroup merged their brokerage operations, which left Morgan Stanley Smith Barney with majority ownership.

"Morgan Stanley Smith Barney is now 40 percent of the revenues of Morgan Stanley—40 percent of revenue is a significant part of the business," he said.

"When we announced the deal in the middle of 2009, we said that the integration of these two companies would take place over about a 3-year time frame. So we're well down that process," added Fleming.

"As we get through that process and as integration costs start rolling off later in 2012, into 2013, we think that revenue contribution will increasingly be reflected in pre-tax earnings and we'll get more credit for it," he went on to say.

Follow Strategy Session on Twitter: @CNBCStrategy


Watch CNBC's "The Strategy Session" weekdays at Noon ET.