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Stories of Interest
- Banca IMI Securities to Pay $35Mn for Improper Handling of ADRs in Continuing SEC Crackdown
- Members of White House ‘Arts Panel’ Resign En Masse in Protest of Trump
- FINRA Whiffs on Disciplinary Sanction: Bill Singer's 'Negligent Market Manipulation in OTC Stock Promotion'
- Heather Heyer’s Mother Says, ‘I’m Not Talking to the President’
- Goldman Sachs May Have Lost $100Mn on Energy Bet Gone Wrong
- SEC Drops Case Against Ex-JPMorgan Traders Over 'London Whale'
- Financial Advisers That Invest in Technology Need to Accomplish These Two Things
- FINRA Amends Codes Regarding Expedited Arbitrator List Selection
- FINRA July 2017 Quarterly Disciplinary Review (Podcast)
- Senior Exec in Citigroup's Equities Unit Has Left
- Prudential Plotting its Escape From Fed's Tough Oversight
- Why CEOs Spurned Trump's Business Councils, in Their Own Words
- A Stockbroker, Her LLC, and Her Customers' Loans (Or Investment?) - Bill Singer
- Brian Quintenz Sworn In as CFTC Commissioner
- A Gary Cohn Resignation Would 'Crash the Markets' – Mgmt Guru Jeffrey Sonnenfeld
- Trading Firm DRW to Buy RGM Advisors - As Low Volatility Forces Out Weak HFT Players (subsc reqd)
- Reputational Damage - Rajat Gupta on Hard Road to Recovery
- 7th Circuit Affirms Spoofing Conviction - Bill Singer
- Wells Fargo Announces Board Changes
- Judge Rules Against Ex-Goldman Employee in Fed Leak Case
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NEWSLETTERS & ALERTS
Morgan Stanley, Bank of America Each Break a 5-Year Losing Streak
[Photo: BofA CEO Brian Moynihan, Morgan Stanley CEO James Gorman]
How does it feel to get a ‘monkey off your back’? Just ask Morgan Stanley or Bank of America. Each firm reached a milestone in the first quarter of 2017 that they had not achieved since 2011.
- Morgan Stanley topped Goldman Sachs in revenue from trading bonds, currencies and commodities for the first time since the 2nd quarter of 2011. [Bloomberg]
- Bank of America added 549 employees in the first 3 months of 2017, snapping 21 consecutive quarters with job cuts. [Bloomberg]
MORGAN STANLEY BOND TRADERS. Since overhauling the fixed income division in 2016 – by slashing about 25% of its fixed income sales and trading staff, selling off large chunks of its commodities business and assigning equities executive Sam Kellie-Smith to turn around the business - Morgan Stanley has recorded strong bond-trading revenues in 4 straight quarters. And, in the latest quarter, revenue from trading bonds, currencies and commodities almost doubled to $1.71 billion, which edged out Goldman Sachs’s revenues of $1.69 billion. Morgan Stanley last beat Goldman in that business in the Q2 of 2011, according to Bloomberg News.
What makes the results all the more impressive is that, while Goldman Sachs was the top-ranked commodities trading firm for the past 3 years, Morgan Stanley had fallen into the second tier last year, ranking no higher than 4th among the 12 largest global investment banks.
BANK OF AMERICA JOB CUTS END. Toward the end of 2011, Bank of America had on hand nearly 289,000 employees and was losing money. CEO Brian Moynihan announced across-the-board cost and job cuts in order to improve profitability. Under his original plan, Moynihan expected to eliminate 30,000 job cuts. However, by the end of 2016, the bank had eliminated over 80,000 positions and head count had fallen to 208,000.
All that changed in Q1 of 2017, when BofA posted earnings that exceed analyst expectations and, instead of more job cuts, the bank added 549 positions. According to Moynihan, customers were expressing more confidence in the economy.