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Dec 6, 2012

Morgan Stanley’s 2013 adviser pay to reward new loans

Dec 6 (Reuters) – Morgan Stanley will shift the way
advisers in its wealth management business are paid next year,
cutting bonuses tied to the amount of revenue they bring in and
rewarding them instead for growing assets and loans.

Advisers, who learned of the new plan Thursday afternoon,
will also be able to buy discounted Morgan Stanley shares for
the first time, according to details of the plan reviewed by
Reuters.

Dec 4, 2012

As Morgan Stanley drops “Smith Barney,” some wonder about the brand

At the Goldman Sachs investor conference on Tuesday, Morgan Stanley wealth management executive Greg Fleming ran through his 31 slides like a financially savvy drill┬ásergeant, with a full discussion of margins, lending, technology, “value propositions” and “illustrative solutions.”

But in the Q&A session, he was asked an unusually thoughtful question by an audience member: What about the brand, and the culture, of Morgan Stanley Wealth Management?

Dec 4, 2012

Morgan Stanley’s Fleming says lending is key to boosting margin

By Lauren Tara LaCapra

(Reuters) – The main reason Morgan Stanley’s (MS.N: Quote, Profile, Research, Stock Buzz) wealth management profits lag competitors is because the firm does not have as big of a lending business, Greg Fleming, the head of Morgan Stanley’s wealth division said at an investor conference on Tuesday.

Morgan Stanley is focused on offering mortgages, tailored loans, securities-based lending and other lines of credit to high net worth clients to catch up to rivals, Fleming said.

Dec 3, 2012

Morgan Stanley trader was probed at Goldman: sources

By Lauren Tara LaCapra and Emily Flitter

(Reuters) – Morgan Stanley hired former Goldman Sachs trader Edward Glenn Hadden to run its Treasury bond desk last year, even though his former employer had placed the trader on paid leave for about a year following an internal inquiry, said three people familiar with the situation.

The inquiry by Goldman involved a matter separate from an ongoing investigation by exchange operator CME Group into a December 2008 trade that involved U.S. Treasury futures.

Dec 3, 2012

Insight: Morgan Stanley wealth unit aims to close lending gap

By Lauren Tara LaCapra and Carrick Mollenkamp and Jessica Toonkel

(Reuters) – In October, Rebecca Rothstein, a Beverly Hills-based private banker to rock stars, top executives and the otherwise rich, abruptly left Morgan Stanley for rival Merrill Lynch.

She had spent more than a decade at Smith Barney before Morgan Stanley took control of the retail broker from Citigroup Inc, but she was getting increasingly frustrated that the firm could not lend money to clients to refinance their yachts and vacation homes, people familiar with her thinking said.

Dec 3, 2012

Morgan Stanley wealth unit aims to close lending gap

Dec 3 (Reuters) – In October, Rebecca Rothstein, a Beverly
Hills-based private banker to rock stars, top executives and the
otherwise rich, abruptly left Morgan Stanley for rival
Merrill Lynch.

She had spent more than a decade at Smith Barney before
Morgan Stanley took control of the retail broker from Citigroup
Inc, but she was getting increasingly frustrated that the
firm could not lend money to clients to refinance their yachts
and vacation homes, people familiar with her thinking said.

Dec 3, 2012

Morgan Stanley trader did not manipulate market-lawyer

By Lauren Tara LaCapra

(Reuters) – A lawyer for Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) Managing Director Edward Glenn Hadden said his client, who is being investigated over a trade involving U.S. Treasury futures while working at Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz), did nothing wrong.

“There is no legal or factual basis for any suggestion of market manipulation,” said James Benjamin, who defended his client in response to a recent regulatory disclosure by the firm that Hadden is being investigated by CME Group Inc (CME.O: Quote, Profile, Research, Stock Buzz) over a four-year-old trade.

Nov 14, 2012

Goldman names smallest partner class since going public

Nov 14 (Reuters) – Goldman Sachs Group Inc named 70
new partners on Wednesday, the smallest number since the
investment bank went public in 1999.
Goldman’s partner naming, a relic from its past as a private
investment bank, occurs every two years and is a closely watched
event on Wall Street. The prior partner class announced in 2010
consisted of 110 people.
The list of new partners includes Russell Horwitz, who is
the company’s secretary and Chief Executive Lloyd Blankfein’s
chief of staff, and David Schwimmer, a natural resources banker
who is also a former chief of staff to Blankfein. Schwimmer
advised on the 2005 merger of the New York Stock Exchange and
Archipelago, and later ran Goldman’s business in Russia.
Also on the list are Kent Clark, an executive in the hedge
fund products group of Goldman’s asset management division, and
Huw Pill, Goldman’s chief European economist.
Goldman has been cutting staff since last year in an effort
to save $1.9 billion in annual expenses in a weak revenue
environment.
Goldman had 407 partners as of Nov. 2, down from 440 in
February, according to regulatory filings. Some of those
partners have announced plans to retire, but won’t leave until
year end.
Goldman projects that, including its new partners, the group
will represent about 1.7 percent of staff, consistent with prior
years. The investment bank’s payroll stood at 32,600 employees
at Sept. 30. It employed 35,700 at the end of 2010.
The geographic breakdown of new partners is 41, or 59
percent of the total, in the Americas; 20, or 29 percent, from
Europe, Middle East and Africa; and nine, or 13 percent, in
Asia-Pacific, a bank spokesman said.
Below is the full list of new partners:

Vivek Bantwal
Pat Fels
John Mallory
Michael Ronen
Heather Bellini
Pete Finn
Joseph S. Mauro
Jami Rubin
Brian Bolster
David Fishman
Charles M. McGarraugh
Yann Samuelides
Jill Borst
Sheara Fredman
Xavier C. Menguy
Joshua S. Schiffrin
Michael Brandmeyer
Jacques Gabillon
Amol Naik
David Schwimmer
Jason H. Brauth
Francesco Garzarelli
Jo Natauri
Gaurav Seth
Stuart Cash
Nick Giovanni
Una Neary
Michael Siegel
Alex Chi
Brad Gross
Gregory G. Olafson
Michael Smith
Kent Clark
Anthony Gutman
Lisa Opoku
Josh Struzziery III
Richard Cormack
Leland Hensch
Gerald Ouderkirk III
Damian Sutcliffe
Jack Daly
Russell W. Horwitz
Francesco Pascuzzi
Michael Swell
Anne Marie B. Darling
Roy Joseph
Anthony W. Pasquariello
Ryan Thall
David Dase
John Kim
Huw Pill
Bobby Vedral
Olaf Diaz-Pintado
Marie Louise Kirk
Dmitri Potishko
Simon Watson
Robert Drake-Brockman
Hugh Lawson
Sean Rice
Toby C. Watson
Alessandro Dusi
Scott Lebovitz
Francois J. Rigou
Yoshihiko Yano
Edward A. Emerson
Ericka Leslie
Scott M. Rofey
Antonio F. Esteves
Luca M. Lombardi
Jeroen Rombouts

Nov 12, 2012

Lloyd Blankfein on line 1! Goldman employees await news

By Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) is due to name new partners on Wednesday, but the benefits of receiving the title are not what they used to be.

Goldman is the only major Wall Street bank to retain this relic from its private partnership days, when senior investment bankers owned the firm, contributing capital and taking home their share of profits.

Nov 6, 2012

Morgan Stanley should not boost bond trading-analyst

Nov 6 (Reuters) – Morgan Stanley is aiming to win
market share in bond trading, but it is not big enough to
compete against rivals like Goldman Sachs Group Inc, and
should instead focus on shrinking that business, JPMorgan
analyst Kian Abouhossein analyst said.

Even as Morgan Stanley tries to win market share, it has
announced plans to reduce the trading assets on its books by
$100 billion, adjusting for risk, mainly in fixed income. But
Morgan Stanley should scrap its market-share ambitions and pull
back further from the bond-trading business, cutting staff and
compensation to reduce costs, Abouhossein said.