Morgan Stanley's fixed income bankers have nothing to fear. Despite presiding over the worst performance of any major bank in fixed income sales and trading in the first quarter (a 44% year-on-year decline), they will not be losing their jobs: James Gorman is perfectly happy with them.
So said Gorman at a fixed income investor day held by Morgan Stanley yesterday.“The size [of the fixed income business] is about right,” Gorman reportedly said at the meeting. “The problem is not the people or the business, the problem is the risk-weighted assets.”
However, questions have been raised over Morgan Stanley's strategy in fixed income. Analysts at Sanford Bernstein pointed out last year that the bank wants to cuts its risk weighted assets in fixed income by 30% by 2015, while simultaneously increasing its market share by 30% - a strategy which seems inherently contradictory.
RBS is making another 1,400 redundancies in its retail banking head office. (Financial Times)
Stephen Daniel, top energy banker at Goldman in the US, retires aged 49. (Financial News)
Bloomberg “has a cult-like structure in which everyone is a believer,” says one former Bloomberg executive. (Financial Times)
Citigroup’s share price has risen 16% in the past month and a half. (Bloomberg)
The average UK person works 32 hours a week. (ONS)
Middle aged yoga can break your back. (NY Times)
If you recognize your current job is inescapably inching towards unhappiness, the worst career move you can make is investing the next ten years of your life there. (WSJ)