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
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