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
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 sergeant, 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?
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.
(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.
(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 (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
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.
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 (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
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
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:
Joseph S. Mauro
Charles M. McGarraugh
Xavier C. Menguy
Joshua S. Schiffrin
Jason H. Brauth
Gregory G. Olafson
Josh Struzziery III
Gerald Ouderkirk III
Russell W. Horwitz
Anne Marie B. Darling
Anthony W. Pasquariello
Marie Louise Kirk
Toby C. Watson
Francois J. Rigou
Edward A. Emerson
Scott M. Rofey
Antonio F. Esteves
Luca M. Lombardi
By Lauren Tara LaCapra
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 (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.