NEW YORK (Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) wants to pay out a smaller portion of wealth management revenue to the retail brokers who generate it, the final and perhaps most difficult front in Chief Executive James Gorman’s drive to reduce staff costs across the bank.
For now, executives are considering changes at the margins: cutting pay for brokers who generate the least revenue for Morgan Stanley Wealth Management, and slashing the money it sets aside to lure experienced new hires. Executives have been hashing out possibilities for the 2015 broker pay plan in recent weeks, but have not made any final decisions.
New York (Reuters) – Morgan Stanley Wealth Management (MS.N: Quote, Profile, Research, Stock Buzz), which is poised to become the largest brokerage in the United States by assets, sees fee-based accounts making up 40 percent of all the money it invests for clients, its top executive said.
Gregory Fleming, who runs the bank’s brokerage arm as president of Morgan Stanley Wealth Management, said at the Reuters Global Wealth Management Summit so-called advisory assets are growing at a healthy pace and that they could make up as much as 40 percent of overall assets in the future.
NEW YORK (Reuters) – Morgan Stanley has hired a senior loan executive and his team from Deutsche Bank AG to cater to high net worth clients who want to buy or borrow against real estate, yachts, artwork and other luxury items.
The Wall Street bank has hired Marcus Mitchell to head its tailored lending team, said Gregory Fleming, president of wealth management and investment management, at the Reuters Global Wealth Management Summit on Monday.
NEW YORK, June 11 (Reuters) – The U.S. Federal Reserve wants
banks to get something out of their annual stress tests beyond
just ticking the box of regulatory compliance, but few banks
actually do, according to a survey to be released later this
Moody’s Analytics polled 32 chief risk officers and others
who took part in the stress tests this year, or may be required
to participate next year. All said they used the results for
“regulatory compliance,” but when it came to business decisions
the numbers were much lower.
NEW YORK, June 10 (Reuters) – Wall Street banks are playing
cat-and-mouse with U.S. regulators over rules that seek to
reduce lending for deals that load up companies with too much
debt, as they try to retain a profitable business and meet
demands from clients and investors.
Leveraged lending is one of the most lucrative forms of
loans for banks, giving Wall Street an incentive to accommodate
borrowers as much as it can. Banks fees on U.S. junk-rated loans
stand at $4.9 billion so far this year, a year-to-date record
and up 10 percent from the same period last year, according to
Thomson Reuters and Freeman Consulting data.
NEW YORK, June 2 (Reuters) – Goldman Sachs Group Inc
said on Monday that Stephen Scherr will become chief strategy
officer at the start of 2015, replacing Andrew Chisolm who will
retire after nearly 30 years.
Scherr is currently global head of Goldman’s financing group
within the investment banking division, a position he has held
since 2008. He will continue to assist in the Wall Street bank’s
lending efforts and maintain his role as head of Latin America,
NEW YORK (Reuters) – Three longtime banks for private equity firm KKR & Co LP (KKR.N: Quote, Profile, Research, Stock Buzz) have snubbed a request for a $725 million buyout loan over concerns it is too risky to pass muster with U.S. regulators, sources familiar with the situation said on Thursday.
The banks had funded a similar deal six months earlier.
The Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp jointly issued guidelines in March 2013 that require banks to cut down on junk-rated loans that would raise the debt levels of a company beyond certain thresholds.
NEW YORK (Reuters) – Sen. Sherrod Brown, a Democrat from Ohio, and Goldman Sachs Group Inc. President Gary Cohn, who’s from Cleveland, are friendly enough that Brown has been known to rib Cohn for abandoning the Cleveland Indians baseball team in favor of the New York Yankees. The two men first met years ago, and Cohn and his family, who are also Democrats, have contributed to Brown’s campaigns.
They may like each other, but the two men are antagonists in a battle over whether Goldman can maintain its lucrative role in physically trading stuff ranging from aluminum to coal to natural gas to zinc.
NEW YORK, May 23 (Reuters) – Sen. Sherrod Brown, a Democrat
from Ohio, and Goldman Sachs Group Inc. President Gary Cohn,
who’s from Cleveland, are friendly enough that Brown has been
known to rib Cohn for abandoning the Cleveland Indians baseball
team in favor of the New York Yankees. The two men first met
years ago, and Cohn and his family, who are also Democrats, have
contributed to Brown’s campaigns.
They may like each other, but the two men are antagonists in
a battle over whether Goldman can maintain its lucrative role in
physically trading stuff ranging from aluminum to coal to
natural gas to zinc.
May 8 (Reuters) – A few years ago, famed financial engineer
Andrew Lo built a computer model that allowed one of the biggest
U.S. banks to figure out which customers were most likely to
fall behind on credit-card payments.
More recently, the Massachusetts Institute of Technology
finance professor has been laboring for another client: the U.S.
government. Working with banking regulators at the Office of the
Comptroller of the Currency, an arm of the Treasury Department,
he’s helping build quantitative tools to find potential credit
risk in the banking industry, starting with the mortgage market.