Financial Services >> Analyst Interviews >> March 11, 2015

Overweighing Large-Cap Banking Stocks

Betsy Graseck
Betsy Graseck, CFA, is a Managing Director covering large‐cap banks at Morgan Stanley & Co. LLC. She joined the company's fixed income department in 1986, after one year at Gunma Bank. After business school, Ms. Graseck was a Consultant in KPMG's bank group from 1990 to 1992, focusing on capital and reserve adequacy, balance‐sheet restructuring and profit‐improvement projects. She returned to Morgan Stanley & Co. LLC in 1992 to cover Japanese bank, brokerage and consumer loan stocks in Tokyo, and during this time was listed in the Institutional Investor All‐Asia Research Team poll. After six years covering those stocks, Ms. Graseck returned to New York as Associate Director of Equity Research. She assumed covered of U.S. large‐cap banks in 2002. She was StarMine’s number one commercial bank stock picker in 2007 and 2008, StarMine’s number six stock picker in the U.S. in 2008, and is top three in the Institutional Investor poll. Ms. Graseck received her B.A. in Japanese studies with a minor in economics from Cornell University. She studied at Waseda University, has an MBA from Columbia University, and holds the Chartered Financial Analyst designation. Profile
TWST: What are some of the major themes and trends that you're seeing in the large bank space right now?

Ms. Graseck: The number one theme right now centers on interest rates. Investors