Bank Spotlight: JPMorgan Slashes CEO’s Bonus, Goldman Earnings Triple, and Morgan Stanley Makes Cuts

Morgan Stanley (NYSE:MS): Current Price $20.66

Changes prompted by new stringent U.S. banking regulations, designed to curb excessive risk taking by financial institutions, have already begun to play a role in the structure of Morgan Stanley, the nation’s sixth largest bank by assets. Sources familiar with the matter told Reuters on Wednesday that the bank plans to cut 1,600 jobs as part of an effort to reassess its businesses.

In addition, Morgan Stanley has laid off two vice presidents and one or two other employees in its commodities division in an attempt to reduce expenses. As the publication reported, the staff-reduction decision followed the bank’s announcement that it would continue its fixed income, currency, and commodities trading business, termed “FICC” by Wall Street, and work to increase market share in that operation by 2 percentage points.

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“Banks need to stay nimble, especially with regard to their commodities operations given reduced market liquidity and heightened cost structures,” a source told Reuters.