Morgan Stanley

  • News

    Bonus Watch ’13: Morgan Stanley CEOs

    The bad news: James Gorman’s pay fell 30 percent this year. The good news: he’s now in a position to show employees how to take these setbacks like a man, rather than grumbling like someone who puts their compensation in a one-year context to define their overall level of happiness.

    / Jan 24, 2013 at 6:38 PM
  • Do you worry that a modern-day CDO structurer wouldn't even know what Mike Tyson's Punch Out is? Or exist, for that matter?

    News

    Morgan Stanley Finalizes Its Entry In The “Who Said The Worst Things About Its Own Products?” Competition

    One thing that would probably be fun would be reading the internal emails sent around at the places that bought terrible RMBS CDOs in the end times of 2006-2007. What did they say? Was it “these mortgages are worth twice what Morgan Stanley is selling them for! We are ripping their faces off”?1 Was it […]

    / Jan 23, 2013 at 4:58 PM
  • morganstanley

    News

    Morgan Stanley Has Canned Enough Employees At This Point

    Great news for anyone who’s been sitting nervously at their desk at Morgan Stanley the last few days, wondering whether or not their boss was about to tap them on the shoulder to go have a chat with HR: if you’ve made it this long, you’re safe! There will be no more human layoffs for the foreseeable future (plants may still be at risk).

    / Jan 18, 2013 at 2:36 PM
  • jamesgormanmorganstanleytradingfloor

    News

    Bonus Watch ’13: Jim Gorman Gives Employees The Option To Either Take Their Bonus In Three Easy Installments

    Since taking the reigns at Morgan Stanley in 2010, CEO James Gorman has guided the firm with a managerial style that boils down to telling people, more or less: You’ll get it when you’ve earned it, “it” being anything from personal space to money to his respect. On the point of compensation, last year he told employees complaining about what they were paid to either open a newspaper and get over themselves or do everyone a favor and quit. Today brings news that this year, he’s doubling down on that mandate and daring anyone to make something of it.

    / Jan 15, 2013 at 4:09 PM
  • s-JAMES-GORMAN-MORGAN-STANLEY-FACEBOOK-IPO-large

    News

    Is Morgan Stanley’s Next Firm-Wide Holiday Party Going To Be Held In A Starbucks Bathroom?

    Sort of a trick question since, as you all know, banks haven’t held firm-wide holiday parties in quite some time but if they did, is that what we could expect? Based on recent reports about a new approach James Gorman is taking with the staff, yes.

    / Jan 10, 2013 at 2:17 PM
  • morganstanley

    News

    Dan Loeb Believes In Morgan Stanley (Even When It Doesn’t Believe In Itself)

    Point: “Our enthusiasm about MS’s turnaround benefits from our generally macro views. We expect CEO confidence to rise and global corporate activity levels to increase markedly in 2013. Morgan Stanley, with its sterling reputation, talent pool, and record in execution in investment banking advisory and capital markets, is uniquely positions to benefit from this improvement.” […]

    / Jan 10, 2013 at 1:30 PM
  • jamesgormanmorganstanleytradingfloor-260x143

    News

    Layoffs Watch ’13: Morgan Stanley (Update)

    Cuts are said to be expected in Asia.

    / Jan 9, 2013 at 9:34 AM
  • News

    Paul Taubman’s Gardening Bill: $1.7 Million

    Not that he needs the work, but ousted almost-former Morgan Stanley dealmaker Paul Taubman will be available on May 5.

    / Jan 7, 2013 at 1:53 PM
  • john-paulson_82845s

    News

    Morgan Stanley Suggests Paulson And Co ‘Advantage’ Investors Pull Their Money And Run

    They were willing to ‘em a chance, but no more.

    / Dec 19, 2012 at 5:08 PM
  • williambryanjennings-260x260

    News

    In Wake Of Exec “Accidentally” Stabbing A Cab Driver, Morgan Stanley Insists You Ask, “What Would The Post Say?”

    A year ago this Friday, a Morgan Stanley banker named William Bryan Jennings attended a couple holiday parties, drank a few Coors Lights, and around 10:30PM hailed a cab and asked the driver, Helmy Ammar, to take him home to Connecticut. On the way, a hungry WBJ requested they stop at G&G Deli off 10th Avenue, where he bought “a 20 oz. bottle of Aquafina water, a sandwich and some Burger King cheesy fries.” As the cab entered approached Jennings’ hometown of Darien, a dispute reportedly broke out as to what the fare for the ride would be. Ammar claims that they’d agreed on $204 before leaving Manhattan, but once in Connecticut, Jennings said he’d only pay $50. Jennings claims that Ammar jacked the price up to $300 and was unhappy when the banker offered $160. Another matter of he said/he said is whether or not Jennings started shouting racial slurs at Ammar and told him, “I’m going to kill you. You should go back to your country!” (Jennings denies this happened and says that Ammar locked the doors and wouldn’t let him out of the cab.)

    The one aspect of the story that is not in dispute is that as tensions flared, WBJ whipped out a pen knife he had in his pocket. For those of you reading from Morgan Stanley, this is where the teachable moments occurs: if you ever find yourself in a situation wherein you’re winding up to stab a cab driver in the hand, stop and ask yourself, “Is this going to look bad in the Post tomorrow morning?” Jennings did not and now this is happening:

    / Dec 19, 2012 at 12:36 PM
  • So ... I hope it's him, no?

    News

    Banker Got In Trouble For Telling Client To Be Honest With Research Analysts

    You may be aware that once there was a problem and this was the problem: Investment bankers wanted to win underwriting business. They realized that having their research analysts shout “BUY BUY BUY!” about every company they underwrote would help to win this business. So they went to their analysts and were all “do that.” […]

    / Dec 17, 2012 at 3:24 PM
  • charliegasparino

    News

    Morgan Stanley Considering Denying (Some) Employees Access To The Building

    For the last year or so, Morgan Stanley CEO James Gorman has sent a simple message to employees grumbling about compensation: STFU or GTFO. Now, according to Charles Gasparino, the bank may be telling a few employees to GTFO regardless of whether or not they’ve been bitching about pay.

    / Dec 12, 2012 at 5:14 PM
  • jamesgormanmorganstanleytradingfloor-260x143

    News

    James Gorman Will Say Something Nice About Wall Street When Wall Street Earns It

    If you’re looking for a cheerleader, go bark up another tree.

    “Say you want to be out ahead of it and give a lot of speeches and talk about all the good we’re doing,” Gorman said today at an industry conference in New York. “And then some trader does some stupid thing like this guy at UBS did and he’s in jail and all bets are off,” Gorman said. He was referring to Kweku Adoboli, the UBS AG trader convicted of fraud this month in the largest unauthorized trading loss in British history…Traders at New York-based Morgan Stanley had too much latitude in the past, “what I call having an outsized sandbox,” Gorman, 54, said at the conference, which was sponsored by the Securities Industry and Financial Markets Association. “Until we can be really confident we’ve got discipline around the sandboxes, I think you have to be really careful not to be holier than thou,” Gorman said. “We’re going to be in the doghouse for a while.”

    Incidentally, this would a good time to mention that Gorman’s bonus policy instituted last January– STFU or GTFO– still stands.

    / Nov 30, 2012 at 12:05 PM
  • News

    Guy Who Was Fired By Goldman Sachs For Amassing “Inappropriately Large” Position Welcomed With Open Arms At Morgan Stanley

    Back in December 2007, things weren’t going so well for Matthew Marshall Taylor. He’d just been fired from Goldman Sachs and not only was he out of a job, but his prospects for finding a new one didn’t look so hot, on account of the fact that Goldman planned to put a note in his file detailing the reason he’d been let go– “for building an ‘inappropriately large’ proprietary trading position”– and it seemed unlikely anyone at the firm would be open to serving as a reference for him moving forward.  Three months later, however, one bank told MMT that there was room for him at their inn. Morgan Stanley, apparently having decided the incident at Goldman was but an asterisk in what would be a long and fruitful career, told Taylor to come on down, employing him for over four years until he left in July of his own accord and not because of any legal issues relating to his work at Goldman Sachs.

    Taylor was accused yesterday by the U.S. Commodity Futures Trading Commission of concealing an $8.3 billion position in 2007 that caused Goldman Sachs to lose $118 million. Goldman Sachs fired Taylor in December 2007 and cited “alleged conduct related to inappropriately large proprietary futures positions in a firm trading account,” in a so-called U-5 form, according to a Financial Industry Regulatory Authority document. Morgan Stanley, which had employed Taylor before he joined Goldman in 2005, re-hired him in March 2008, according to the records.

    Taylor, who handled client-related equity derivative trading at Morgan Stanley, left the firm in July, according to Mark Lake, a company spokesman in New York. His departure wasn’t related to the CFTC complaint filed against Taylor yesterday in federal court, according to a person familiar with the situation, who requested anonymity because the information is private. Taylor concealed the position by bypassing the firm’s internal system for routing trades to the Chicago Mercantile Exchange and manually entering fabricated futures trades in a different internal system, according to the complaint. Goldman Sachs, which wasn’t identified in the CFTC lawsuit, said Taylor allegedly made the trades while employed at the firm.

    Anyway, since MMT is a free agent at the moment, if any other banks would like to overlook the blip, please do get in touch directly. Citi, BofA? At least just think about it. He was good enough for Morgan Stanley, he should be good enough for you.

    Morgan Stanley Hired Goldman Trader Accused Of Hiding Position [Bloomberg]
    CFTC Charges Matthew Marshall Taylor with Fraud for Fabricating and Concealing Trades from His Employer and Obstructing Their Discovery [CFTC]

    / Nov 9, 2012 at 3:22 PM
  • Just hanging out here with some VaR

    Banks, News

    Morgan Stanley Now 23% Safer

    A value-at-risk model basically works like this. You have some stuff, which is worth X today. Tomorrow it will be worth X + Y, where Y ranges from more or less negative infinity to positive infinity. Y is a function of a bunch of correlated random variables, rates and credit and stock prices and general […]

    / Oct 18, 2012 at 1:15 PM
  • williambryanjennings

    News

    Morgan Stanley Executive Pretty Pleased To Have Stabbing Charges Dropped

    The criminal case against a former Morgan Stanley executive charged with stabbing a cab driver following a fare dispute was dropped Monday after a Connecticut state’s attorney revealed that the driver never turned the knife over to police. The driver, Mohamed Ammar, “had the knife the whole time,” said supervisory assistant state’s attorney Steven Weiss. […]

    / Oct 15, 2012 at 12:55 PM
  • News

    Morgan Stanley Exec Who “Accidentally” Stabbed Cab Driver After Difference Of Opinion Re: Fare Gets Off (Update)

    Remember William Bryan Jennings? To recap, he’s the Morgan Stanley executive who last December had a cab take him home to Darien, Connecticut from Manhattan and, according to the driver, refused to pay the $200 fare and instead began threatening the guy with racial slurs before intentionally stabbing his hand with a pen knife. According to WBJ’s lawyer, the stabbing did happen but it was by accident and Jennings only pulled out the knife he had on him because he was “fearful for his safety” and “did not intend to hurt” the driver. The two parted ways around midnight, at which time Jennings went to bed and the cabbie called the police, who had trouble identifying WBJ until they got a lucky break with video footage from the deli on 10th Avenue he asked the driver to stop at for snacks on the way to CT. Anyway, Jennings, who was placed on leave from Morgan Stanley in March, was set to appear in court on Monday but then this happened:

    Connecticut prosecutors will not pursue charges against a top Morgan Stanley banker accused of stabbing a cabby in a drunken, racist rage over a fare from Manhattan, the cabby’s lawyer said yesterday. The decision to let W. Bryan Jennings off the hook has left the cabby “outraged,” his lawyer said. Jennings, from the ritzy Gold Coast town of Darien, had originally been charged with assault, theft of service and intimidation based on race or bigotry after the December 2011 incident. But Hassan Ahmad, the lawyer for cabby Mohamed Ammar, said Stamford prosecutors have told him they’re dropping the case…Jennings’ lawyer would not comment, and the State’s Attorney’s Office in Stamford could not be reached.

    No word on whether or not there’s still a place for him at the House of Gorman.

    Earlier: Morgan Stanley Exec “Accidentally” Stabs Cab Driver After Difference Of Opinion Re: Fare

    / Oct 12, 2012 at 11:36 AM
  • News

    Layoffs/Bonus Watch ’12/13: Morgan Stanley

    Back in January, Morgan Stanley CEO James Gorman sent a simple messages to his employees, who had been grumbling about their pay: STFU or GTFO. “You’re naive, read the newspaper, No.1,” Gorman told Bloomberg he would say to any members of his staff that wanted to give him lip about their compensation to his face. “No. 2, if you put your compensation in a one-year context to define your over all level of happiness, you have a problem which is much bigger than this job. And No. 3, if you’re really unhappy, just leave.” Today, in an interview with the FT, Gorman reiterated his stance and added that in addition to reducing compensation for current employees, the bank will likely be drastically cutting pay for future analysts. If anyone has a problem with that, consider applying for a gig at Bank of Mythical Pre-Crisis Era Bonuses. Alternatively, Gorman is happy to discuss a compensation plan in which you’ll be awarded shares of his foot in your ass, which vest immediately.

    In the latest sign of the pressure Wall Street is under to cut costs and address high pay levels, James Gorman, chief executive, said that staff and remuneration would have to be sacrificed as banks cope with lower profits. “There’s way too much capacity and compensation is way too high,” Mr Gorman said in an interview with the Financial Times. “As a shareholder I’m sort of sympathetic to the shareholder view that the industry is still overpaid.”

    Morgan Stanley itself is already axing 4,000 jobs, 7 per cent of its workforce, by the end of this year. In the new year, Mr Gorman said, the bank will consider its next round of cost-cutting, including lower pay and bonuses. News of further pay cuts, including potentially for new entrants at the investment bank, comes just weeks after Goldman Sachs confirmed it was overhauling its well-known entry-level programme for analysts. Goldman was said to have tired of the number of analysts in the programme who left the bank for hedge funds. Mr Gorman said that Morgan Stanley will probably keep its own analyst programme, but pay could be reduced significantly.

    Morgan Stanley Chief Warns On Wall Street Pay [FT]
    Earlier: James Gorman To Employees: STFU Or GTFO

    / Oct 5, 2012 at 11:48 AM
  • what the?

    Banks, News

    Morgan Stanley Doesn’t Want To Share Custody Of Smith Barney Any More

    Buried in a footnote1 a while back I ruminated on the fact that, in the deal where Morgan Stanley bought a chunk of its Morgan Stanley Smith Barney brokerage JV from Citigroup, Morgan Stanley got a sort-of-free option to buy the rest of Smith Barney, and how that option is (1) valuable and (2) sort […]

    / Sep 21, 2012 at 5:25 PM
  • I'm just pretty bored of Zuckerberg, y'know?

    News

    Half Of Morgan Stanley Didn’t Do As Well On Facebook As The Other Half

    Bloomberg has a story today about how, while one side of Morgan Stanley made lots of money on the Facebook IPO in fees and greenshoe trading profits, another side of it did not do so well. So: how much of the subtext here is actually here? Morgan Stanley, the underwriter that took Facebook Inc. public […]

    / Sep 19, 2012 at 5:17 PM
  • Banks, News

    Morgan Stanley Heeding Frenemies’ Advice About Trading Less, Better

    Here’s an interesting set of slides that Morgan Stanley CFO Ruth Porat presented at the Barclays conference today. For some reason this one struck me: Morgan Stanley: basically a mutual fund! Half a mutual fund. Really barely at all an investment bank, which I guess is the way of the world for investment banks, but […]

    / Sep 11, 2012 at 4:21 PM
  • Lloyd thinks regulation is great; his analysts aren't so sure.

    Banks, News

    Goldman Research Analysts Suggest That Morgan Stanley Should Get Smaller And/Or Better At Bond Trading

    Wall Street banks’ research on their competitors is not only a window into analysts’ anxieties about their own banks’ prospects, but also a ripe area for conflicts between investment advice and industry advocacy. The days of analysts writing research reports that were like “Facebook should really do a huge equity offering and hire my bank […]

    / Sep 10, 2012 at 2:23 PM
  • News

    Layoffs Watch ’12: Morgan Stanley

    Employees within fixed income may need to find room at another inn.

    People inside Morgan Stanley are bracing for layoffs in the fixed income department. Sources inside Morgan Stanley say people within the fixed income business are expecting a dramatic downsizing of that business. They are not thinking about a total exit, maybe exiting certain parts of it, spinning those off if they can, but clearly a radical downsizing.

    MS Planning Layoffs [FBN]

    / Sep 6, 2012 at 5:41 PM
  • News

    Morgan Stanley ‘Rainmakers’ Might Quit Because Their Computers Don’t Work

    They’re not there yet, however; first, they’re going to send James Gorman a strongly worded letter and make a decision based on his response. They do sound pretty miffed though, so God help the guy if his answer is anything but “I’ve got my tool kit and I’m on the way over.”

    Several dozen Morgan Stanley Smith Barney advisers who manage tens of billions of dollars of client money are considering leaving the firm, saying that widespread technology problems have made it very difficult for them to do their jobs, according to people familiar with the matter. The group has hired a lawyer to argue that they should be able to keep lucrative retention payments even if they quit, and they have also drafted a letter to Morgan Stanley CEO James Gorman outlining their concerns, though the letter has not yet been sent, the sources said.

    Rebecca Rothstein, one of the firm’s top advisers based in Beverly Hills, spoke to him on the group’s behalf, two sources familiar with the conversation said. Rothstein, who is close to Gorman and not part of the group, told him about the difficulties advisers and their clients are having – from trading delays and problems with foreign currency transactions to inaccurate account statements and bounced checks – and warned the group was planning to quit, one of the sources said…Morgan Stanley spokesman James Wiggins said the firm was aware that brokers have been voicing complaints about the new technology, but did not know anything about this specific group of advisers. “No such letter has been sent to management and no mass exodus has been threatened,” he said. “Management’s door is always open to discuss with any concerns they may have.”

    Morgan Stanley Smith Barney Rainmakers Consider Exit [Reuters]

    / Aug 31, 2012 at 3:33 PM
  • Opening Bell

    Layoffs Watch ’12: Morgan Stanley

    Morgan Stanley’s roadmap to the future involves fewer humans, more machines.

    In a move to repair its flagging bond-trading business, Morgan Stanley is scrambling to replace some of its well-paid bond traders with computers. The New York company is hiring programmers and technology specialists to help it trade bonds electronically and handle client orders in the hope of exploiting an expected shift in the way bonds and other fixed income products are traded. While the effort represents only a part of what the firm is doing to boost low returns in the business, the shift already has reduced the ranks of interest-rate and foreign-exchange traders on some desks by 10% to 20%. Morgan Stanley’s head of interest-rate trading, Glenn Hadden, has told colleagues in recent months and that the trading floor of the future will surround a few traders with the hum of powerful machines.

    Man vs. Machine At Morgan Stanley (WSJ)

    / Aug 9, 2012 at 10:41 AM
  • ELECTRICITY!

    News

    When Morgan Stanley’s Merger Bankers Say No, Its Derivatives Bankers Say Yes

    I very much enjoyed this Morgan Stanley electric shenanigans case that settled yesterday. According to the complaint, this happened: KeySpan, an electric generator, realized that prices for electric generation would be going down as more capacity came online. It decided to keep up prices by cutting back its own generation. But that’s dumb, because then […]

    / Aug 8, 2012 at 5:05 PM
  • Vik gets his picture here over Gorman on strength of puzzled expression.

    Banks, News

    Let’s Break Up Whichever Bank Is More Wrong About What Morgan Stanley Smith Barney Is Worth

    There’s been sort of an impromptu referendum on whether the big US universal banks should be smashed into itty-bitty pieces, and how itty-bitty, and which ones should be smashed first, and for some reason the leading contenders seem to be Citi and Morgan Stanley. Those two seem uninterested in that free advice, though, since they’re […]

    / Jul 26, 2012 at 2:33 PM
  • News

    Mike Mayo Will Have You Know It’s Hard Enough Doing His Own Job, Let Alone James Gorman’s As Well

    Especially when he’s working his ass off to make this company big money and no one seems to give a baker’s damn.  Here’s a tip from the Mayo Jar: When Fortune All-Star Analysts talk, you listen.

    / Jul 26, 2012 at 1:56 PM

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