On the evening of November 19, 2015, James Gorman, Chairman and CEO of Morgan Stanley, spoke at Peking University (PKU). The majority of the audience were students from the Guanghua School of Management. This event was hosted by Li Jin, Associate Dean of the Guanghua School of Management.
Founded by J.P. Morgan & Co. partners Henry S. Morgan (grandson of J.P. Morgan), and Harold Stanley, the Morgan Stanley company came into existence on September 16, 1935, and is currently a Global Wealth Management, Institutional Securities, and Investment Management company and bank. James Gorman joined Morgan Stanley in February, 2006. Having been the Co-President and Co-Head of Strategic Planning, he was appointed the CEO in January, 2010.
The host, Mr. Li Jin, raised questions to Mr. James Gorman, which included questions from PKU students. Mr. Gorman first briefly introduced the first formation of banks, and specifically pointed out the major features of investment banks like Morgan Stanley. Having gone through the catastrophic economic as well as financial crisis in 2008, which was probably the most severe economic decline since the Great Depression. Morgan Stanley was one of the few remaining investment banks on Wall Street after the crash. The success of the bank was partly attributed to the leadership of Mr. Gorman. “If you want to be in a role of a leader, you have to enjoy making decisions”, said Mr. Gorman. He further illustrated that any decisions would encounter strong opposition. “You cannot just sit there and wait for perfection”, as he told the students. In his point of view, the world of finance is led by decisiveness.
In regards to the criticism of banks for causing the economic crash of 2008, he stressed that other parties like governments, private enterprises, and citizens were also responsible in the crash. As the global emerging markets have been developing, its instability has caused a round of doubts. Mr. Gorman claimed that the high risk was part of investing in emerging markets. And it is also the same case with China. With China becoming the largest economy in the world, Mr. Gorman said that China “must be treated seriously”. However, the slow-down of China’s economic growth rate, following the super high growth of the past decades, has also raised tension among many people. Mr. Gorman defined this current situation as a transition period, during which the consistency of China’s economy should be paid particular attention to. He is looking forward to future opportunities in China and Asia.
Questions raised by the students included the company’s support for start-ups, threats to traditional business forms brought by ever developing Internet business, compulsory requirements for Morgan Stanley’s applicants, as well as others questions. Near the end of the interview, Mr. Gorman mentioned the big challenges for Morgan Stanley and himself for running the corporation. Then he showed the confidence to take on the responsibility of Morgan Stanley to respect their employees and help more people do a better job.
Written by: Liu Xiya
Edited by: Li Ruoxue
