Employee Shuffling at Bank of America, Morgan Stanley and Citigroup

Today the Financial Select Sector SPDR (NYSEARCA:XLF) is outperforming the major indexes, up 0.3 percent. New rumors about Basel compliance and some executive changes are especially influencing these companies.

Bank of America Corporation (NYSE:BAC) lets go about 20 percent of the managing directors in its Asian investment banking division, as part of an effort to cut expenses in the currently less-than-lucrative region. More than just a thinning out, an executive recruiter says, “That sounds like carnage.” Bank of America Corporation shares are up 1 percent today.

A memo from Morgan Stanley (NYSE:MS) CEO James Gorman says Eric Grossman will replace Frank Barron as the firm’s chief legal officer, according to the New York Times. Meanwhile, Patrick Lynch, Morgan Stanley’s head of European credit sales and trading, is leaving the bank, reports Bloomberg citing two people familiar with the matter. The Wall Street Journal reports that at least five employees of Deutsche Bank’s (NYSE:DB) institutional client group and fewer than 10 from Morgan Stanley’s Australian institutional equities division have been let go. The cuts are part of broader restructuring plans at both companies.

The Nikkei reports that on Tuesday Citigroup Japan (NYSE:C) is expected to promote Vice Chairman Masatsugu Nagato to chairman.

Here’s how shares of Bank of America, Morgan Stanley and Citigroup are reacting in trading action:

Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $6.25, up $0.07, or 1.13%. They have traded in a 52-week range of $4.92 to $15.31. Volume today was 163,870,500 shares versus a 3-month average volume of 261,447,000 shares. The company’s trailing earnings are $-0.31 per share.

Morgan Stanley (NYSE:MS): MS shares recently traded at $16.17, up $0.27, or 1.7%. They have traded in a 52-week range of $11.58 to $31.04. Volume today was 11,180,252 shares versus a 3-month average volume of 33,298,600 shares. The company’s trailing P/E is 10.60, while trailing earnings are $1.53 per share.

Citigroup, Inc. (NYSE:C): C shares recently traded at $29.05, up $0.5, or 1.75%. They have traded in a 52-week range of $21.40 to $51.50. Volume today was 22,534,914 shares versus a 3-month average volume of 57,108,500 shares. The company’s trailing P/E is 7.74, while trailing earnings are $3.75 per share.

To contact the reporter on this story: Gina Smith at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com