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Morgan Stanley Accused Of Pulling A Wells Fargo

So that's not good!
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Remember the sh*t-storm Wells Fargo recently found itself in? You should, because it just happened last month, and it's an ongoing storm ' sh*t. And now Morgan Stanley is getting a little taste.

A Morgan Stanley unit was accused by Massachusetts officials of forcing its financial advisers into high-pressure sales contests to cross-sell products to clients. The accusation on Monday against Morgan Stanley Smith Barney LLC, the New York-based bank’s retail brokerage, increases the scrutiny on an industry tactic that has recently backfired for others including Wells Fargo & Co., which agreed last month to pay $185 million after federal and local authorities found the firm’s cross-selling culture helped push employees to open unauthorized accounts...The high-pressure sales culture attracted scrutiny after authorities blamed San Francisco-based Wells Fargo’s cross-selling goals for encouraging employees to potentially open more than 2 million accounts without customers’ knowledge. Wells Fargo Chief Executive Officer John Stumpf was summoned to Washington for two Congressional hearings to explain the practices. Jim Wiggins, a Morgan Stanley spokesman, said the company objects to the allegations and intends to defend itself “vigorously.”

Morgan Stanley Unit Accused of High-Pressure Sales Tactics [Bloomberg]


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