Morgan Stanley

  • 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 […]

    / 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 […]

    / 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 […]

    / 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 […]

    / 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 […]

    / 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 […]

    / Jul 26, 2012 at 1:56 PM
  • richard_handler--300x300

    News

    Bonus Watch ’12: Jefferies Wonders Aloud How Its Ass Tastes

    Jefferies set aside $870 million in the first six months of its fiscal year, enough […]

    / Jul 26, 2012 at 12:30 PM
  • News

    Layoffs Watch ’12: Morgan Stanley

    The House of Gorman will be saying good-bye to a few thousand Little Jims before year-end.

    Chairman and Chief Executive James Gorman said the firm’s work force at year-end will fall 7% from 2011, reflecting previously announced layoffs as well as the firm’s efforts in applying “a high bar for replacing attrition.” The forecast implies a reduction of more than 4,000 jobs from the firm’s global headcount of 61,899 at Dec. 31. Last winter, Morgan Stanley announced 1,600 job cuts spread across its businesses, which was its largest such cutback since late 2008 and early 2009. The firm completed roughly 4% to 5% of those cuts in January and will complete an additional 2% to 3% by the end of 2012, a spokeswoman said.

    Morgan Stanley Expects 7& Cut In Its Workforce [WSJ]

    / Jul 19, 2012 at 12:59 PM
  • News

    Layoffs Watch ’12: Morgan Stanley

    The House of Gorman is said to be in the process of letting some employees down easy.

    Morgan Stanley will this week complete a round of job cuts that will ultimately lead to the company shedding 100 sales and trading staff, underscoring what is expected to prove a dismal second quarter for Wall Street banks. The cuts are across Europe, the Middle East and Asia, according to people familiar with the New York-based bank’s plans. The bank has so far laid off about two-thirds of its original 100-person target, leaving some 33 people to go this week.

    Morgan Stanle Said To Shed Staff As Deals Fall [FT]

    / Jul 10, 2012 at 12:16 PM
  • GET IT?

    News

    Banks Sell Products That Make Them Money. So Do Ratings Agencies

    The role of the hero who has been in the belly of the beast and […]

    / Jul 3, 2012 at 1:32 PM
  • Why hello there cow.

    Banks, News

    Moody’s Slightly Reduces Overrating Of Banks

    Are we supposed to care about these downgrades? I like Glenn Schorr at Nomura, emphasis […]

    / Jun 22, 2012 at 10:03 AM
  • News

    Moody’s: Banks Do Things That Are Bad And Good And Bad For Them

    Moody’s Investors Service downgraded the debt ratings of 15 major international banks and securities firms […]

    / Jun 21, 2012 at 5:54 PM
  • News

    Morgan Stanley Suggests CNBC Check Themselves Before They Wreck Themselves

    Although the Morgan Stanley’s handling of the social media site’s disastrous stock offering is under […]

    / Jun 21, 2012 at 1:35 PM
  • FaceBook

    Morgan Stanley Won Its Lead Role On The Facebook IPO By Showing Mark Zuckerberg A Picture Of A Pretty Pretty Sports Car

    Here is a detail from the Wall Street Journal’s article today about how Morgan Stanley […]

    / Jun 18, 2012 at 12:09 PM
  • News

    Morgan Stanley’s Lead Tech Banker Put A Now-Awkward Clause In His Facebook IPO Contract

    In snaring the most coveted investment-banking assignment of the year, Morgan Stanley’s Michael Grimes insisted […]

    / Jun 18, 2012 at 11:12 AM
  • News

    Layoffs Watch ’12? Morgan Stanley?

    James Gorman is approaching cost-cutting with the same focus as the Zodiac killer, so maybe.

    Morgan Stanley is “maniacally focused” on cutting costs apart from compensation and is on track to reduce expenses by $500 million this year, Chief Executive James Gorman said on Tuesday. Gorman, speaking at a conference in New York, also reiterated Morgan Stanley’s plans to reduce costs by $1.4 billion annually over the long term…The bank is also monitoring the size of its overall payroll for possible job cuts as revenue remains under pressure from a weak market environment, he said. “We are very, very focused on that, obviously, in this environment,” said Gorman.

    Morgan Stanley “maniacally” focused on cost cuts-CEO [Reuters]
    Very much related: Morgan Stanley Joins Goldman Sachs In Herbicide

    / Jun 12, 2012 at 2:23 PM
  • News

    Layoffs Watch ’12: Goldman Sachs, Morgan Stanley, Citigroup, Barclays?

    Supposedly summer cuts are under consideration at all firms.

    Morgan Stanley is planning to eliminate about 100 trading jobs internationally in the next several weeks — with an unknown number of the cuts coming from New York. At Goldman, executives are likely to let the hatchet fall if the slowdown in trading doesn’t reverse itself, bank officials have said…Goldman is already cutting selectively among its middle-management ranks but could cut even deeper, sources explained. Goldman CFO David Viniar has told people that the firm may have to undergo a “right-sizing” again if the markets’ rocky road doesn’t improve, according to sources. And it’s not just Goldman and Morgan. Industry sources said that a number of other firms, including Citigroup and Barclays Capital, may also look to trim staff.

    [NYP]

    / Jun 5, 2012 at 2:12 PM
  • Banks, M&A, News

    Morgan Stanley Will Soon Not Share Its Research Estimates With 14% More Retail Customers

    Morgan Stanley has announced that it will be buying 14% of its Morgan Stanley Smith […]

    / May 31, 2012 at 12:26 PM
  • News

    Confidential To The Haters: Check Back In With James Gorman About Facebook In A Year

    Until then, step off, bitch.

    Morgan Stanley Chairman and Chief Executive James Gorman defended the securities firm’s role in Facebook’s tumultuous initial public offering, telling employees internally that the firm worked “100% within the rules” and calling the steep decline in Facebook’s stock “disappointing.” Mr. Gorman, in a weekly strategy meeting Tuesday that was later webcast to employees, said “speculation of nefarious activity” surrounding the social networking company’s IPO is untrue. Contrary to some reports, he said, he wasn’t “aware of any dissent” among the underwriting firms regarding Facebook’s IPO price of $38 a share. The discussion, called a strategy forum, is held weekly at the firm. The event, which Mr. Gorman attends periodically, features commentary from analysts and economists and is linked to on the company’s internal website.

    Mr. Gorman told employees to “be proud of the job your colleagues did [in the Facebook IPO process] and don’t judge us based upon what happened over a couple of days.” Commenting on Facebook’s stock performance, Mr. Gorman acknowledged the first day of trading “matters” but added investors should also judge an IPO based on its share price after 30 days, 90 days and 12 months.

    Morgan Stanley Chief Defends Facebook Handling [WSJ]

    / May 30, 2012 at 6:20 PM
  • News

    Number Of People Suing Facebook Approaching Number Of People On Facebook

    It did not take long for plaintiffs’ lawyers to realize that there was good money […]

    / May 23, 2012 at 4:30 PM
  • Banks

    Spare Some Worrying For Ratings-Triggered Collateral

    Remember how a week ago people went around bothering themselves about Bank of America’s derivatives? […]

    / May 11, 2012 at 6:22 PM
  • News

    Wall Street Bank That Might Consider Entering The Witness Protection Program Screws Zoe Cruz Out Of A Job For The Second Time

    [caption id="attachment_76125" align="alignleft" width="260" caption="How people smile when they're plotting cutting your brake lines."][/caption]

    Earlier this week, it was announced that Zoe Cruz would be closing her hedge fund, Voras Capital Management. Cruz started the fund in 2010, a few years after she was famously fired by John Mack at Morgan Stanley (where she was co-President), for reasons that remain unclear to this day but include theories like: a) the belief that she was responsible for losing the firm a few billion dollars b) a lot of people disliked her– including this guy named Vikram Pandi who was “not a fan“– and told Mack they would leave if he made Cruz CEO c) Mack had to blame either himself or Cruz for some losses and he chose her. d) She was, you know, a girl, and the boys didn’t like that. Regardless, the ousting was probably mildly to majorly humiliating for ZC and since Mack– who she was extremely close with prior to the personnel change– was the one who told her to hit the bricks, it would have been fair to assume she spent a least a little time fantasizing about  sticking pins in a Mack voodoo doll and/or slashing his tires.

    In 2009, though, Mack and Zoe had lunch and she told him she wanted to start a hedge fund. And maybe it was it was the fact that he was feeling nostalgic, maybe it was the fact that tragedy + time = comedy, maybe it was the fact that he was still riding high from “saving” Morgan Stanley, maybe it was the wine, maybe it was that he was feeling bad about the unceremonious canning and thought “Oh, why not just give the poor girl some money” but Mack went back to the office and “told bank executives that he would like to help her start her new investment business, according to people familiar with the matter.” And when they said, “But John, didn’t you fire her for supposedly taking on too much risk and losing the firm $4 billion,” he said “[Well], her track record was a very good track record.” So Morgan Stanley gave Cruz $20 million and she was on her way. And while we can’t say for sure, and we’re not suggesting money necessarily heals all wounds, the $20 million and the stamp of approval and the fact that she could say to investors she was trying to raise money from ,”Hey look, even the guy who fired me wants in” probably helped smooth things over and improve MS’s standing in the Cruz-missile’s eyes. She likely even had nice things to say about her former employer at social gatherings! And then this happened:

    Last month, Morgan Stanley asked for its money back, disappointed by the hedge fund’s performance and worried about the shrinking size of Ms. Cruz’s firm, according to people familiar with the matter…The retreat by Morgan Stanley was part of broader moves to sell off assets that Chief Executive James Gorman felt exposed the company to unnecessary risk or otherwise didn’t serve clients, the people said…On Thursday, the 57-year-old Ms. Cruz told clients in a letter that she has decided to close down Voras Capital Management. The letter cited “the difficult capital-raising environment for new funds and the enormous uncertainty and volatility in the markets,” according to a person who saw the letter. It was signed by Ms. Cruz.

    Oooo, that’s not good. In fact, it’s worse than if they’d never given her the $20 mill at all. But to give and take back? Yikes. All those nice things Cruz said about MS and Co? Strike them from the record because they are so over! Don’t call, don’t write, don’t cry don’t beg ’cause you’re done! Finished!

    Morgan Stanely Bailed On Firm [WSJ]

    / May 11, 2012 at 12:52 PM
  • News

    Facebook’s Lead Bookrunner Still Making Zuckerberg Work For It

    “FYI: Facebook still blocked at MS. Awkward. (Also, no banners or giant thumbs).” [Earlier, Related: Things that would never happen at JPMorgan]

    / May 7, 2012 at 5:42 PM
  • News

    Dreams Of ‘What If’ Haunt Olympic Hopeful Who Walked Away From Morgan Stanley

    World champion rower Michael Blomquist valued the chance for an Olympics gold medal in London […]

    / Apr 20, 2012 at 11:49 AM
  • News

    Charlie Gasparino Reminds James Gorman He Is Public Enemy Number One On Wall Street, Will Break Your Knee Caps To Make A Point

    Gasparino: Let’s get something straight right off that bat– 6 months ago, someone at your firm wanted to kill me…you don’t want to kill me, correct?
    Gorman: Charlie…I don’t wan to kill you…I don’t think they did either.
    Gasparino: I don’t blame them if they did..given my reputation with PR people. So thank you for coming here, checking your guns at the door.

    Charlie Gasparino with Morgan Stanley CEO James Gorman [FBN]

    / Apr 19, 2012 at 2:18 PM