Morgan Stanley has changed its mind, again. Back in June, the American bank was supposed to be building up its fixed income sales and trading business. One bad quarter later and instead it's now said to be chucking a quarter of its fixed income staff on a scrapheap already heaping up with unwanted traders from places like Credit Suisse and Deutsche Bank.
Citing 'people with knowledge of the plans' Bloomberg reports that Morgan Stanley is preparing to cut up to 25% of its fixed income staff 'across all regions in the next two weeks.' BloombergGadfly notes that this move is likely to fill fixed income traders at Goldman Sachs with a curious melange of excitement and fear. On one hand, Morgan Stanley's move means Goldman will have fewer fixed income competitors and should be able to increase revenues and market share. On the other, it signals that another bank has decided that fixed income's woes are secular rather than cyclical, and that Goldman CFO Harvey Schwartz's insistence that there will be no imminent fixed income layoffs at Goldman Sachs, might be somewhat misguided.
Separately, if you have a baby at Credit Suisse, you can take it to meet your clients. Seriously. As part of a new 'parenting leave package,' the Wall Street Journal reports that Credit Suisse is going to be paying for 'nannies to accompany business travelers.' We assume they'll be going along for the children.
Static Bonuses At J.P. Morgan (Reuters)
J.P. Morgan's bonus pool will be exactly the same as last year.
Keeping It In The Family (WSJ)
Between 2004 and 2013, J.P. Morgan hired 222 sons and daughters of clients in China. (WSJ)
Goldman's Rise In Europe (WSJ)
Goldman Sachs has beaten Deutsche Bank to second place for investment banking fees in Europe. (WSJ)
There's a 0.8% pay rise coming at UBS in Switzerland. (FiNews)
Sit Tight (WSJ)
"Really the best thing we can do is to almost encourage people to do nothing and wait for the recovery to happen," Martin Gilbert, Aberdeen Asset Management.
Quote of the Day:
“The Bank of America [firing] felt like a random act of violence, because the business that I had responsibility for was doing well, it was growing, it might have been the only business there that was growing. Our noses were clean. There were no scandals. Then I got reorganized out,” Sallie Crawcheck isn't over it yet.