Morgan Stanley

  • 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
  • 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 to pay its 3,809 employees an average of $228,407. Goldman Sachs set aside $225,789 for each of its 32,300 workers. Average pay for the 26,553 people in JPMorgan’s investment bank was $184,989, or at least 18 percent less than Jefferies’s […]

    / 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 emerged to slay it seems to be psychologically rewarding,* because people keep trying to claim it for themselves. Like this Geoffrey Tomes gentleman, who bared his soul to tell DealBook that he “was selling JPMorgan funds that often had weak […]

    / 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 mine: We think the net financial impact of these downgrades will be manageable as 1) potential collateral calls are small percentages of these firms’ liquidity pools; 2) counterparties have been preparing for this for some time and ratings downgrades have […]

    / 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 on Thursday, a move that could cost the banks billions of dollars in extra collateral…U.S banks that were downgraded included: Bank of America, Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley. “All of the banks affected by today’s actions have significant […]

    / 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 scrutiny by just about every business news outlet under the sun, a Wall Street insider tells us the  investment banking’s corporate communications warriors are blaming CNBC for engaging in some pre-IPO hyping of their own. CNBC senior vice president and editor […]

    / 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 tech banker Michael Grimes excluded the other underwriters from having much of an active role in managing and pricing the Facebook IPO and I cannot stand how good it is: A page of his pitch book to other companies,* which […]

    / 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 to a senior Facebook executive that he be the “single driver” of the company’s initial public offering, adding that if the deal soured, it would be his “throat to choke. [WSJ]

    / 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 Barney joint venture from Citi in a sort of glacially negotiated way. MS currently owns 51% of MSSB (plus $5.5bn of preferred interests), and Citi owns the other 49% (plus $2bn of preferred). You can read how they’re going to […]

    / May 31, 2012 at 12:26 PM

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