Merrill saw the most pickup in traditional retail. Morgan Stanley still seems like the problem child.

I don't think the defections we saw at Morgan Stanley when Purcell was running it earlier this year will have a big effect on earnings.

You look at Morgan Stanley and its peers, you see a lot of reliance on their proprietary trading desks and a willingness to take on more risk. If the markets are reaching a cyclical peak, which I think they are, profits are at risk when the economy slows down.

Our feeling is that Brazil will default in the next year and you could have a similar problem to what you had in Argentina.

It seems that the emphasis on expanding distribution outweighs the quest for positive operating leverage in the near term.

The traditional retail lines are blurring.