Heads Roll at Morgan Stanley
Structured finance professionals continue to drop like flies across Wall Street. The key to keeping your job might be to lose billions of dollars with no apologies, as it seems to be working for Bear Stearns hedge fund manager Ralph Cioffi, who still has his job, and presumably a yacht.
A few blocks away the working stiffs are less fortunate:
According to a person familiar with the matter, Morgan Stanley will cut 300 jobs -- many of them today -- in its institutional securities division, which includes investment banking, fixed income, equities and equity research. About two-thirds of the cuts will take place in the US, with the rest in Europe. Some jobs will be moved to Asian markets including Hong Kong and India.
A Morgan Stanley spokesman said today: “As part of our year-end process, we are selectively resizing some of our businesses to reflect current market conditions as well as reallocating resources to those regions outside the US where we see the best potential for growth.”
A small proportion of the cuts will include jobs moved to Asia, including bankers who will leave the US for India or traders who will move to Hong Kong. The group includes a number of managing directors, but no group heads, the source said.....
The hardest-hit groups will include leveraged finance, fixed-income and the structured products groups, the source said.
Other parts of Morgan Stanley, including asset management and the retail brokerage, will not be impacted. Financial News
Many of those affected will learn of the cuts today and will be asked to leave the firm today. While many investment banks cut staff at the end of the year, such moves usually occur after the annual performance reviews—and bonus estimates—in November and December. Morgan Stanley’s last round of job cuts was in 2005.
Yes, some of the folks are being asked to leave today, presumably bonus-free.
Ah, the joys of working on Wall Street. Don’t let the door hit your ass on the way out.
Morgan Stanley slashes 300 jobs in the US and Europe
Financial News
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