James Gorman Promises Morgan Stanley Employees They Get To Keep Their Jobs For At Least Another 10 Weeks

Author:
Publish date:

As you may have heard, Morgan Stanley didn't have the "best" third quarter. Inside the bank employees have been girding their loins for what that will mean for bonuses and in some cases, what it will mean for their jobs, period. At the same time, Meredith Whitney has been on tour saying that everyone is getting fired (she ball parks it at 80,000 "just in the US"). But these fears are apparently unfounded, according to CEO James Gorman, who shared some great news with the group earlier this week.

Don't ask him about January 2011 but for the rest of 2010? You're all still employed!

Gorman, in a meeting with employees following the firm’s announcement of third-quarter losses, responded to a question about whether the firm’s hiring freeze would soon translate into job cuts as many at the bank fear. Gorman said emphatically, according to a person at the meeting, that there will not be job cuts this year. He added that despite the quarterly loss, the firm's fourth-quarter performance will be markedly better.

No Job Cuts At Morgan Stanley, Gorman Says [FBN]

Related

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.