Network News

X My Profile
View More Activity
2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

More Big Cuts At Morgan Stanley

The contraction continues, Episode 236: Former investment bank Morgan Stanley said today that it will cut 10 percent of its institutional-securities group and 9 percent of its asset-management professionals.

The most recent cuts come after Morgan Stanley laid off 10 percent of its entire staff earlier this year.

Morgan Stanley was once Wall Street's second-largest investment bank. But when that breed of bank ceased to exist in recent months, Morgan Stanley and Goldman Sachs became bank holding companies -- meaning they can accept cash deposits -- in order to stay in business.

Wall Street's financial sector was hit first and hardest (so far) by the ongoing financial crisis, thanks to all the toxic assets, such as mortgage-backed securities, that are still rotting on their books.

Morgan was kept afloat by a $9 billion investment from Japan's Mitsubishi UFJ Financial Group in October.

-- Frank Ahrens

The Ticker is Twittering!

By Frank Ahrens  |  November 12, 2008; 3:13 PM ET
Categories:  The Ticker  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Is Bailout Now Better For Taxpayers?
Next: Nov. 12, 2008

No comments have been posted to this entry.

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company