Financial Organizations

Paper Summary:

In this article, the writer looks at the financial firm, Morgan Stanley and the Swiss Bank, UBS. The writer points out that the goal of most financial institutions is to extend the deadlines for the loans given to its customers in order to match the deadlines of the institution's resources. Therefore, the proportion of long-term assets in the total assets indicates how prepared is a financial institution to face future difficulties. The writer notes that UBS is doing very well, with 97.6% and 98.8%, in 2003 and 2004, respectively, of its total assets being long-term assets. Further, the writer points out that the situation is similar in Morgan Stanley's case, 98.6% in 2003 and 98.9% in 2004. The writer concludes that both institutions are well prepared to face any potential risks, which explains in part the prestige of both Morgan Stanley and UBS.



Introduction
Operating Profitability
Asset Utilization
Risk Management
References

From the Paper:

"UBS is the largest bank in Switzerland. It was formed from Swiss Bank's purchase of the old UBS back in 1998 and is divided into four units. The wealth management unit is the world's largest private bank and also incorporates the Swiss retail banking division. The investment bank unit was formerly known as "Warburg". Another unit is the asset management section, which serves institutions and individuals. The fourth unit is the U.S. brokerage division, previously known as PaineWebber. UBS has tried and succeeded to establish a common brand for all its acquired entities."

Sample of Sources Used:

• Morningstar - financial information on UBS and Morgan Stanley, available on the Internet at www.morningstar.com
• Stephen A. Ross, Randolph W. Westerfield, Jeffrey F. Jaffe, Corporate Finance, Boston , McGraw-Hill/Irwin, 2005

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