In case you were holding out hope that the rumors were of the dirty, baseless variety, do not fear: Morgan Stanley’s chief financial officer, Colm Kelleher, has confirmed that the firm plans to layoff ten percent of its institutional securities staff, and nine percent of its asset management business.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
First to get laid of…
First to get laid ofd…
that makes sense…focus on investment banking, prime brokerage, and prop trading
You don’t “layoff” people. You deply a strategy of un-docking quality employees.
@5 Are you the E-Trade baby?
@5 Are you the E-Trade Baby?
@5, f-off.
In PE we ‘rightsize’ departments. And as with our ladies panties, the right size is always smaller…
prop trading getting cut too. prop trading at banks are dead – without leverage and all that regulatory oversight there is no way these banks can take the same risk they used to.
PB is cut also but mainly because hedge funds are going out of business and the surviving ones are shifting to healthier firms.
the layoffs in lawyer land continue unabated. It’s a bloodbath. What a shit profession
http://endofesq.com/?p=507
First to get laid. First to get off.
What about the Cannola?
1 to listen to audio report or download podcast.
Morgan Stanley to Fire More Workers as Economy Slows (Update1) Page 3/5
percent in 2007. Total assets have dropped to below $800 billion
from $987 billion in the fiscal third quarter as the firm
reduces its leverage.
Kelleher said he expects lower leverage to shave 3 to 5
percentage points from the firm’s normalized return on equity
and that in the “very near term” returns will be “very
challenged.”
The slides today also said the firm’s institutional
securities business, which includes investment banking and
trading, plans to “re-size cost base and headcount to match
current opportunities.”
Courting Deposits
The areas that the division plans to “reshape” include
prime brokerage, proprietary trading, principal investments and
commercial real estate origination. The areas that the firm
plans to “maintain” or “grow” include cash trading, equity
derivatives, foreign exchange, rates, commodities, corporate
credit, mergers and acquisitions and capital raising, according
to the slides.
1.618
MS peeps leaving 125 High St. here in Boston with boxes and personal effects in hand…bloodshed has started. So sad.
You say cannola, I think Van Wilder!
@ 16
That is really sad… Picture?
best of luck to MS peeps
-Moneygrip Wisdom
People who are happy with layoffs are idiots, this isnt good for anyone. unless its Goldman people, then bring it on. I know alot of good people at MS
my last day os this friday
i work in NYFIDCOLL. (MS ID : eley )
got 2 months severance
i am not sure if I need to be happy or sad here. Its just hit home…I am unsure of what i am going to do from next week.
its a surreal feeling..any help ?
Ill help. Go out and get ridiculously crapfaced tonight and walk in at noon tomorrow. Sleep at your desk, rinse repeat on friday. Make sure you leave a gift for Mack in the mens room on fri before you leave.
Any more standing ovations for Mack. Me thinks not
@21
My advice is to do what your parents did; get a job, sir.
Anyone know if the 10% and 9%, respectively, was globally or just in the US (which would mean NYC and JC mostly, I’d think)??
2 months’ severance is terrible.
the bums will always lose.
@21 That sucks.
Best follow 22′s advice…
#21 here
yes..2 months is what EDs and above get..which is terrible.
the HR however told me that I will be eligible for a “bonus share”. Its a part of the severance but I am not sure of the figure yet.
are there no cuts in IT ?
are there no cuts in LN office ?
I feel I got a raw deal.
just asking what is the average severance pay in Hedge funds and IBs ?
6 months ?
4 months ?
let me know. I need to bargain tomorrow.
@29
In HF’s: a new identity so your investors cant find and lynch you
In IB’s: the pencils on your desk and the tissue that hr gave you during the exit conversation
@30- 29 is obviously asking as an employee, not the founder/manager, rocket scientist.
@29- i believe 4 months.
thanks 31.
30 – Gosh …what happened to you ?
@21
I’d top shelf the toilet. This is your last chance.
@21
what’s NYFIDCOLL
There are lots of opportunities for attractive young ladies in my stable.
@35
The cute ones in NY? What became of them?
@34
new york fixed income division collateral
I heard that Blackstone is laying of 15%. Can anyone confirm?
@21
thats not the way ms works… how do you know you’ve been cut? its cut and out the door
No offense to any individual, but this is what has and needs to happen. Read Michael Lewis’ piece in yesterday’s write-offs, one of the most authentic piece I’ve read on what is the real problem: Yourselves. You all forgot to take care of your clients and only took care of yourselves.
That is what should happen to people when they put clients in things they don’t even understand like “managed futures” and overcharge for what is really basic hand holding services.
Last thing the world needs is any more “asset managers” or “financial advisors”.
Any severance is generous and a bonus payment (given billions in losses), is laughable.
Good riddance.
fuck I want a cannoli now.
@40
You sound like a consultant.
@40, speak when spoken to. Lewis is a great writer, but he hasnt worked for a financial institution for 25 years. I agree that the Ceo’s did a terrible job managing risk, but alot more goes on on Wall St than that. There are plenty of people who add value. Bear in mind that it is a small part of all o these fiorms that did this to the economy.
#21
I was at NYFIDCOLL as well until a few months ago. You can maybe guess who I am.I sat next to Graig
Sorry to see they got you as well.
Shock, anger and then on to something else. This may be an opportuntiy for better things. I got over it … mostly … and I may have to go through it again. Keep on trucking. Life is not about work but where will I get the money? Things could be a lot worse and they will be soon enuf.
Who are all the models going to hang out with now?
Who they normally hang out with 46, actors, other models, musicians.
I never heard of a model going Oh, i hope i go out and meet an investment banker tonight. Thats just nonsense.
21, yea . its cut and out the door. what’s going on?
@17 mmmmm… I think I’ve had these before!
Best of luck to you 21. My best advice, and I’m serious here, get your ass up early every morning and go work out. You need to feel like you have control over something.
SPODE
My advice 21?? Drink until you cant remember the last 6 months of your life, that will help dull the pain of unemployment and the inevitability of your girl breaking oup with you, losing your home and self worth, etc….
What are associate severance numbers??
Does anyone know if this is going to graduates with offers?
Does anyone know if this is going to affect graduates with outstanding offers?* Sorry I accidentally hit the post button instead of preview.
54 I’ve heard that the ones who can’t tell the diff between “post” and “preview” are going to have their offers rescinded. Its such skills that separate the men from the boys during those late nights and long weekends of humping spreadsheets and proofing pitch books, which is basically all that you people are good for anyway.
too sad, didn’t read.
Tanned Banker
@54-Call HR and ask them and always have a plan “B”.
I just wonder, why would not to offer people instead of laying off 10% percent, reduce their wages on the same 10%, but at least to give hope in such hard time?
I just got persuaded to join this year. What about the guaranteed bonus I signed? I think they are legally obligated to give 60 days notice, which should cover the bonus period? I’m not bonus hungry by any means, but I’m thinking it would be a good buffer to have.
I agree with @58, cut all the bonuses and enforce pay cuts in wall street instead of laying people off.
Heard there will be no layoffs in the Market Risk Department. Bonus pool is actually higher to retain talent (cough, cough).
Good job guys, its just a pity you were asleep on the job and let your firm blow up!
@ 55, stop reading “Monkey Business”
GT
MACK THE KNIFE IS BACK – Good look everyone! I’m hearing 3 weeks for every year. Not sure how true that is yet
Who freakin’ cares what happens to you all? Out here on Main St., real people lost real money out of their paychecks trusting you fools.
We bought the 401k fallacy of securing our retirements and contributed up to 20% of our take home pay to fund these b.s. accounts while doing without some pleasurable things in the meantime.
Turns out, we should have spent the shit out of that money instead and had pleasureable memories to treasure.
Fuck you Wall St. insiders. Fuck you. Fuck you to Hell.
Who freakin’ cares what happens to you all? Out here on Main St., real people lost real money out of their paychecks trusting you fools.
We bought the 401k fallacy of securing our retirements and contributed up to 20% of our take home pay to fund these b.s. accounts while doing without some pleasurable things in the meantime.
Turns out, we should have spent the shit out of that money instead and had pleasureable memories to treasure.
Fuck you Wall St. insiders. Fuck you. Fuck you to Hell.
#21,28 here
Gosh, the negotiations work. The HR doesnt have a set number for severance. you could negotiate (aka threaten) to get a better deal
They have a ceil though, cant go more than 4 months !!
I was given 2 months and 4 weeks for every year. I Came to DB and learnt that its a raw deal.
Went back and spoke to HR for an hour…haggling.. changed to 4 months and 2 weeks for every year (was there for 4 years) plus some weird bonus component
bonus component = 3.1415% of average of last 3 years bonus !!!
#65 how long did u work at MS?
close to 4 years, son
#65 – so if i have only been at MS for 1 year, I will get 2 months?
Also how do you know your numbers yet? I work in MSIM and we haven’t even heard what day the layoffs are happening yet. Are being kept completely in the dark. Any insight would be great. Thanks.
#65 – so if i have only been at MS for 1 year, I will get 2 months?
Also how do you know your numbers yet? I work in MSIM and we haven’t even heard what day the layoffs are happening yet. Are being kept completely in the dark. Any insight would be great. Thanks.
I am in MSIM Legal and Compliance. I know there will be cuts in our departments as well. Some say definitely by next week.
I heard some PB IT guys were just canned
OMG… i cant believe that no one has realized that 65′s severance package did not change and is clearly a joke… 2 months (or 8 weeks) and 4 weeks for every year (4 x 4) is the same as 4 months (16 weeks) plus 2 months for every year (8 weeks). LOL.
The Goldman guy that figured out the sham.
OMG… i cant believe that no one has realized that 65′s severance package did not change and is clearly a joke… 2 months (or 8 weeks) and 4 weeks for every year (4 x 4) is the same as 4 months (16 weeks) plus 2 months for every year (8 weeks). LOL.
The last two riffs cut deep. We’re going to quality people this round. Good luck to us all.
MON: Go Fish! – SB is holding his weekly morning meeting – I doubt “resizing” will commence after his Q&A session.
TUE: –Bingo!
WED: –Yahtzee!
THUR: – You sank my Battleship!
FRI: – Advance to GO! At least one day before the weekend is needed to hold departmental “let’s lick our wounds” conference calls.
Week of the 23rd? –not a chance.
What happened to GWM?