Credit Suisse analysts just lowered their earnings estimates for both Goldman Sachs and Morgan Stanley, citing “choppier than expected” market conditions in the 4th quarter, NYTimes Dealbook reports. 

    So, what's Goldman's take:  [C-I:  Hopefully, not surprise.]  They see investors benefiting with the prospect of a leaner, meaner Goldman.  Employees can lose out if Goldman claws back their bonuses.  CS analysts expect Goldman's compensation expense to be at 40.4% of revenue for 2010 - 2nd lowest ever for Goldman since its IPO in 1999.  Wall Street firms typically aim for a 40 - 45% ratio.  With trading revenue down across the Street, that will be difficult for some to hit.CS says Goldman's low ratio is “reflective of both management discipline and the impact of new hires over the past year" - as the firm increased headcount by 9%. 

    And, Over at Morgan Stanley:  Some signs of improvement for M. Stanley, in particular a strong finish for its investment banking business.  Reining in compensation, however, is still a work in progress - CS analysts estimate that MS's full-year compensation ratio will be high, at 51.5% - although that's down from 61.2% for 2009.  [NYT Dealbook, 12/30, " A Leaner Goldman ..."]