Lauren's Feed
Jan 9, 2013

Morgan Stanley cuts 1,600 jobs as business languishes

By Lauren Tara LaCapra

(Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research) plans to cut 1,600 employees starting this week, two people familiar with the matter said on Wednesday, in the latest sign of a pullback on Wall Street as revenue from trading and deal-making remains in the doldrums.

The staff reduction pertains to Morgan Stanley’s institutional securities unit – which includes sales, trading and investment banking, and whose staff will be reduced 6 percent – as well as related support staff who work in areas like technology, said the sources, who were not authorized to speak publicly about the matter.

Jan 9, 2013

Morgan Stanley to cut 6 percent of securities unit staff: source

By Lauren Tara LaCapra

(Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) plans to cut 6 percent of its institutional securities unit staff starting this week, two people familiar with the matter said on Wednesday in the latest sign of a pullback on Wall Street as revenue from trading and dealmaking remains in the doldrums.

Combined with related job cuts of support staff, Morgan Stanley’s workforce reduction will amount to 1,600 people, said the sources, who were not authorized to speak publicly about the matter.

Jan 8, 2013
via Unstructured Finance

Goldman: 1, Volcker: 0

Photo

By Lauren Tara LaCapra

There’s an interesting article out today from Bloomberg, which accuses Goldman Sachs of skirting the yet-to-be-defined-or-implemented Volcker rule, and accuses its top executives, including CEO, Lloyd Blankfein, of being a hypocrite.

Bloomberg reporter Max Abelson has done some good work on the subject. His article is well written and well sourced—he spoke to at least 20 people and got many of them to go on the record about their former employer and describe how Goldman continues to place bets with the firm’s own money.

Jan 8, 2013

Rising rents may prod affluent US city dwellers to buy homes-Reis

Jan 8 (Reuters) – U.S. apartment vacancies declined and
rents rose again in the fourth quarter, continuing a years-long
trend that is likely to encourage more affluent renters to
become home buyers this year, according to real-estate research
firm Reis Inc.

The national apartment vacancy rate dropped to 4.5 percent
in the last three months of 2012 from 4.7 percent in the
previous period, marking three straight years of vacancy
declines, according to Reis data released on Tuesday. It was the
lowest vacancy rate since the third quarter of 2001, according
to Reis data.

Dec 27, 2012
via Unstructured Finance

Wall Street channels Charles Dickens in 2012

By Lauren Tara LaCapra

As 2012 comes to an end, it’s clear that Wall Street has had the best-worst year in quite some time.

Bank profits are at record highs and lows, driven by free money from the Fed that they can’t make any money with, and a historically small number of historically huge deals. Facebook’s IPO – among the biggest ever – happened this year, and it was an enormous failure and a terrific success all at once.

Dec 20, 2012

IntercontinentalExchange takes aim at CME with NYSE talks

NEW YORK/LONDON (Reuters) – IntercontinentalExchange is in talks to buy New York Stock Exchange owner NYSE Euronext, in a multi-billion dollar deal designed to push it into the big league of European derivatives and take on arch rival CME Group.

ICE (ICE.N: Quote, Profile, Research, Stock Buzz) may consider a spin-off or sale of NYSE’s stock markets, a source told Reuters. As well as the 200-year old New York exchange, the NYSE also owns bourses in Paris, Amsterdam, Brussels and Lisbon.

Dec 20, 2012

IntercontinentalExchange in talks to buy NYSE – source

Dec 19 (Reuters) – IntercontinentalExchange Inc is
in talks to buy NYSE Euronext, the operator of the New
York Stock Exchange, according to a source familiar with the
situation on Wednesday, in a multibillion dollar deal that could
help the commodities exchange take on arch rival CME Group Inc
.

A deal could be announced as early as Thursday, the source
said, declining to be named because the discussions are private.

Dec 20, 2012

NYSE, IntercontinentalExchange in merger talks: WSJ

By Lauren Tara LaCapra and John McCrank

(Reuters) – IntercontinentalExchange Inc is in talks to buy NYSE Euronext, the operator of the New York Stock Exchange, according to a source familiar with the situation on Wednesday, in a multibillion dollar deal that could help the commodities exchange take on arch rival CME Group Inc.

A deal could be announced as early as Thursday, the source said, declining to be named because the discussions are private.

Dec 14, 2012

Morgan Stanley promotes senior bankers in U.S. and Europe

Dec 14 (Reuters) – Morgan Stanley has promoted
several senior bankers to positions overseeing mergers and
acquisitions in the U.S. and Europe, following a shakeup at the
top level of that division last month.

Bob Eatroff and Jim Head were named co-heads of M&A in the
Americas, while Colm Donlon and Johannes Groeller were named to
the same positions in Europe, Middle East and Africa.

Dec 12, 2012

Berkshire buyback seen clashing with estate tax push

Dec 12 (Reuters) – Warren Buffett’s $1.2 billion share
buyback from a single unnamed investor likely helped that
person’s estate save substantially on taxes, just one day after
the Berkshire Hathaway CEO said the rich should actually be
paying more, not less, when they die.

With the “fiscal cliff” looming and estate taxes set to rise
dramatically in less than three weeks, the timing was seen as
advantageous – and, according to Berkshire watchers, also out of
place in the context of Buffett’s recent tax activism.