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Jan 6, 2014

Morgan Stanley rates trading head leaves amid strategic shift

NEW YORK (Reuters) – Morgan Stanley’s (MS.N: Quote, Profile, Research, Stock Buzz) former global head of rates trading, Edward Glenn Hadden, said he has left the bank to pursue another opportunity after a change in strategic direction.

In an interview on Monday, Hadden said he decided to leave after Morgan Stanley’s management changed plans for the business, and after his former boss, Ken de Regt, left in May.

Dec 4, 2013

Morgan Stanley amps up lending to boost wealth margins

NEW YORK (Reuters) – Just a few years ago, Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) lacked the expertise, infrastructure or desire to do a lot of lending, but today it is making a big push into loans to bridge a profit gap with rivals.

Morgan Stanley’s brokerage business historically focused on helping clients invest in stocks and bonds, leaving lending to competitors like Citigroup (C.N: Quote, Profile, Research, Stock Buzz) with bigger retail banking operations.

Nov 22, 2013

Goldman Sachs lost over $1 billion on bad currency bets in third quarter

NEW YORK (Reuters) – Goldman Sachs Group Inc lost more than $1 billion on currency trades during the third quarter, regulatory filings show, offering some insight into why the firm, considered one of Wall Street’s most savvy traders, reported its worst quarter in a key trading unit since the financial crisis.

Foreign exchange was the only trading area that was a money loser, according to regulatory data issued in November. In the third quarter, Goldman reported its weakest revenue – $1.3 billion – in fixed-income, currency and commodities trading since the height of the financial crisis.

Nov 21, 2013

Goldman Sachs burned by bad currency bets in third quarter

NEW YORK (Reuters) – Goldman Sachs Group Inc lost more than $1 billion on currency trades during the third quarter, recent regulatory filings show, offering some insight into why the firm, considered one of Wall Street’s most savvy traders, reported its worst quarter in a key trading unit since the financial crisis.

Foreign exchange was the only trading area that was a money loser, according to regulatory data. In the third quarter, Goldman reported its weakest revenue – $1.3 billion – in fixed-income, currency and commodities trading since the height of the financial crisis.

Nov 20, 2013

Wall Street banks must abandon ‘cottage industry’ model: McKinsey

NEW YORK (Reuters) – The biggest Wall Street banks have not done nearly enough to boost shareholder returns, despite years of cost-cutting and tailoring balance sheets to a more profitable mix, consulting firm McKinsey & Co said in a report released on Wednesday.

If those banks do not take more dramatic steps to reshape their business models, the industry’s return on equity could fall further – to a mere 4 percent by 2019 from 8 percent last year, the report said.

Nov 19, 2013

Insight: As U.S. default threatened, banks took extraordinary steps

NEW YORK (Reuters) – As the United States threatened to default on its debt last month, major U.S. banks set up war rooms, spent many millions of dollars on contingency planning and, in some cases, even prepared to underwrite federal government benefits.

In a series of interviews with top bank executives, new details emerged about the extent of the contingency planning that was undertaken before and during the 16-day government shutdown and as a potential default loomed.

Nov 19, 2013

As U.S. default threatened, banks took extraordinary steps

NEW YORK, Nov 19 (Reuters) – As the United States threatened
to default on its debt last month, major U.S. banks set up war
rooms, spent many millions of dollars on contingency planning
and, in some cases, even prepared to underwrite federal
government benefits.

In a series of interviews with top bank executives, new
details emerged about the extent of the contingency planning
that was undertaken before and during the 16-day government
shutdown and as a potential default loomed.

Nov 13, 2013

Goldman’s Blankfein says he regrets troublesome pre-crisis trades

NEW YORK, Nov 12 (Reuters) – Goldman Sachs Group Inc
Chief Executive Lloyd Blankfein said on Tuesday that he regrets
collateralized debt obligation trades the Wall Street bank made
in the run-up to the financial crisis that later caused a
firestorm of public criticism.

Collateralized debt obligations (CDOs) are pools of bonds
that are bundled, sliced up according to credit risk, and sold
to investors. As the mortgage market heated up leading into
2007, investment banks began selling more exotic varieties
linked to mortgages.

Nov 7, 2013

Wall Street bonuses to rise 5 to 10 percent this year: consultant

NEW YORK (Reuters) – Wall Street’s biggest risk takers – its bond traders – will probably see their bonuses drop this year, while people in safer roles, such as money managers, will likely get a boost, according to a forecast by compensation consulting firm Johnson Associates.

Overall, it said, individual Wall Street bonuses may rise 5 to 10 percent, on average, compared with last year, as the industry continues its halting recovery from the 2007-2009 financial crisis. Top executives of Wall Street firms will see bonuses rise by as much as 5 percent, Johnson Associates said.

Oct 28, 2013

Credit markets see Morgan Stanley as less risky than Goldman

NEW YORK, Oct 28 (Reuters) – Morgan Stanley is now
seen in derivatives markets as less likely to default on its
debt than Goldman Sachs, a reversal of long-term price
trends that signals investors’ confidence in the bank’s efforts
to make itself safer.

The switch started on Oct. 18 when Morgan Stanley beat
earnings expectations, two days after Goldman Sachs posted
disappointing results. While Morgan Stanley showed signs of
progress in wealth management – where it has made a big bet for
future growth and stability – Goldman reported unexpectedly weak
revenue in trading, a volatile business from which it gets the
bulk of its income.