Morgan Stanley started a quick round of job cuts on December 15, 580 of which are jobs on Wall Street. Even as it report on buying European assets as a astrategy for US companies went live yesterday, the bank itself was running out employees in a bid to regain profitability as bans are headed for 20-40% fdrop in revenues this quarter led by their Client trading units,, even as US gets close to finalising new regulation and with stress tests expected to be a breeze for all the Fed’s bank citizens, equities and bank stocks in particular have been exploring moving up on efficiency gains from job rationalisations and closing of proprietary trading units and/or limiting of trading desks in light of the bad market conditions.
Goldman Sachs has also been seen taking strangely bullish positions in metals and Gold opposite to the prevailing vieew on many metals including Copper and Gold as the US Dollar strength and the moving of the stimulus center to Euro country means bad news continues in commodities
Morgan Stanley management has linked the job cuts to the performance management plan in the year end review cycle even as Euro shocks took its shares down 44% for the year even as it started the year ahead of others on trading profits and asian investors adding stakes than the exits at other franchises like BofA and GS
- Morgan Stanley to cut 1,600 jobs in Q1: reports (marketwatch.com)
- Morgan Stanley Shares Pop on Job Cuts News (forbes.com)
- Morgan Stanley – MBIA deal, MF Global to get bankruptcy funding (advantages.us)
- Morgan Stanley, Goldman Sachs consolidate Job Losses (advantages.us)