Morgan Stanley CEO predicts recession through 2021; predicts recovery will be “between a `U’ or ‘L’”

Morgan Stanley CEO James Gorman sees the coronavirus-induced global recession lasting for the entirety of this year and 2021.

When asked about how a potential economic recovery expected in the second half of this year would take shape, Gorman said that while he hopes it will be a sharp “V” recovery, in reality it will probably take longer to reopen cities and factories.

“If I were a betting man, it’s somewhere between a `U’ or ‘L’” shaped recovery, Gorman told CNBC on Thursday in an interview. “I would say through the end of next year, we’re going to be working through the global recession.”

“This is not going to turn on a dime,” Gorman said. “We’re not going to get to the point where everybody is on the subway in one day. To get consumers and small businesses back and to get everybody feeling like the world is stable again, that’s going to take months.”