Gasparino: Morgan Stanley (MS) Looks to More Job Cuts as Dodd-Frank Weighs
Up)
Morgan Stanley (NYSE: MS) may be the latest in line for large layoff duty, according to new reports Tuesday.
Fox Business Network's Charlie Gasparino is reporting that Morgan Stanley may reduce its workforce by more than the 1,600 announced in recent weeks. An internal memo has executives warning that job cuts might total 5,000 or more by June, which is inclusive of those already made.
In total, the cuts amount to nearly 10 percent of the 60,000 currently employed at the bank.
Gasparino notes the continuing pressure from the recent implementation of Dodd-Frank regulation on banks. Requirements from Dodd-Frank require that firms eliminate proprietary trading desks, and take on more risk with their own capital. Further, trading for customers may also need to be trimmed.
Rochedale Securities analyst Dick Bove also commented on the salutation, saying traders are basically walking around with a bulls-eye of their backs. Bove said the positions he would like to hold the least include "a trader of any product, an analyst, junior corporate finance people or any type of middle manager."
Morgan Stanley is also reportedly cutting payouts to executives and deferring cash bonuses as it works for further federal compliance. Shares are down about 0.5 percent Tuesday.
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Fox Business Network's Charlie Gasparino is reporting that Morgan Stanley may reduce its workforce by more than the 1,600 announced in recent weeks. An internal memo has executives warning that job cuts might total 5,000 or more by June, which is inclusive of those already made.
In total, the cuts amount to nearly 10 percent of the 60,000 currently employed at the bank.
Gasparino notes the continuing pressure from the recent implementation of Dodd-Frank regulation on banks. Requirements from Dodd-Frank require that firms eliminate proprietary trading desks, and take on more risk with their own capital. Further, trading for customers may also need to be trimmed.
Rochedale Securities analyst Dick Bove also commented on the salutation, saying traders are basically walking around with a bulls-eye of their backs. Bove said the positions he would like to hold the least include "a trader of any product, an analyst, junior corporate finance people or any type of middle manager."
Morgan Stanley is also reportedly cutting payouts to executives and deferring cash bonuses as it works for further federal compliance. Shares are down about 0.5 percent Tuesday.
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