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Morgan Stanley cuts 1600 jobs

English: Morgan Stanley's office on Times Square

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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

 

 

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One comment on “Morgan Stanley cuts 1600 jobs

  1. Pingback: Citi fighting for International (Home) Equity and Fair treatment in Stress Tests | The Banking and Strategy Initiative

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This entry was posted on December 27, 2011 by in Banking, Financial Markets, US and tagged , , , , , , , .

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