1,600 jobs go at Morgan Stanley

Latest bank to cut back.

Morgan Stanley is about to cut 1,600 jobs in an effort to cut costs.

This is about 6 per cent of the total headcount at the targeted section of the bank - the institutional securities group - which raises money for corporate lending and mergers.

Here's the FT:

Morgan Stanley will begin informing employees affected by the job cull in the coming days and weeks. A large slice of the trimmed positions will include highly paid senior bankers from the ranks of managing directors and executive directors.

Pay and bonuses for bankers “comes down because the amount of people in the business comes down,” Mr Gorman said in the FT interview in October.

Even with the additional cost-cutting, Morgan Stanley is targeting a much more modest return on equity than the pre-crisis levels of as much as 23 per cent. RoE is a key measure of a bank’s ability to make money for its shareholders.

“We’re generating 5 per cent, can we get back to 10 per cent? That’s much more interesting to me than can we get back to 15 per cent or will we ever get back to the glory days – those are completely flawed anyway,” said Mr Gorman.

We've already seen cuts at UBS, Citigroup, Deutsche bank and Credit Suisse  - and Morgan Stanley seems the latest in the series. The cost-saving measures have followed new regulations that have restricted the banks' activities.

Morgan Stanley will cut 1,600 jobs. Photograph: Getty Images
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PMQs review: Theresa May shows how her confidence has grown

After her Brexit speech, the PM declared of Jeremy Corbyn: "I've got a plan - he doesn't have a clue". 

The woman derided as “Theresa Maybe” believes she has neutralised that charge. Following her Brexit speech, Theresa May cut a far more confident figure at today's PMQs. Jeremy Corbyn inevitably devoted all six of his questions to Europe but failed to land a definitive blow.

He began by denouncing May for “sidelining parliament” at the very moment the UK was supposedly reclaiming sovereignty (though he yesterday praised her for guaranteeing MPs would get a vote). “It’s not so much the Iron Lady as the irony lady,” he quipped. But May, who has sometimes faltered against Corbyn, had a ready retort. The Labour leader, she noted, had denounced the government for planning to leave the single market while simultaneously seeking “access” to it. Yet “access”, she went on, was precisely what Corbyn had demanded (seemingly having confused it with full membership). "I've got a plan - he doesn't have a clue,” she declared.

When Corbyn recalled May’s economic warnings during the referendum (“Does she now disagree with herself?”), the PM was able to reply: “I said if we voted to leave the EU the sky would not fall in and look at what has happened to our economic situation since we voted to leave the EU”.

Corbyn’s subsequent question on whether May would pay for single market access was less wounding than it might have been because she has consistently refused to rule out budget contributions (though yesterday emphasised that the days of “vast” payments were over).

When the Labour leader ended by rightly hailing the contribution immigrants made to public services (“The real pressure on public services comes from a government that slashed billions”), May took full opportunity of the chance to have the last word, launching a full-frontal attack on his leadership and a defence of hers. “There is indeed a difference - when I look at the issue of Brexit or any other issues like the NHS or social care, I consider the issue, I set out my plan and I stick to it. It's called leadership, he should try it some time.”

For May, life will soon get harder. Once Article 50 is triggered, it is the EU 27, not the UK, that will take back control (the withdrawal agreement must be approved by at least 72 per cent of member states). With MPs now guaranteed a vote on the final outcome, parliament will also reassert itself. But for now, May can reflect with satisfaction on her strengthened position.

George Eaton is political editor of the New Statesman.