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You very much Morgan Stanley breaking news the CEO James Gorman has put a lid on new hires.
And is now deciding whether to lay off more people at the -- securities firm how much and when Charlie Gasparino.
This is not layoffs right now now probably saying -- what they have right now according to a senior executive inside the firm is they have an informal hiring freeze.
Basically the -- only had they are not getting staff in this doesn't cover financial rises and brokers they work on commissions of the different ball game altogether.
They are not adding staff only replacing.
Key position so this is kind of interest and mortgage -- everything has come to -- stop it is the fourth quarter but still this is this is very agency.
And it's basically building up to what we know is gonna come in general it was so you tell the fox is -- -- James Gorman C you'll Morgan Stanley in -- We'll be decided then.
How much and if you cut I think it's more how much -- cut from the firm my -- if -- verses that I'd.
Decision as -- may -- they're gonna know in January that's what we're told inside Morgan Stanley.
But it's how the but I think it's going to be if they have a approximate 55000 employees at least for a good chance -- -- -- from inside the firm they're gonna look at potential layoffs.
You know in equity and sales trading not too much you know there's a -- -- look -- and getting out of the commodities business I don't think or even fixed income.
I don't know that -- the gonna cut people there that's what I hear some trimming an investment banking fixed but I'm beginning Monday.
Patrick they actually do make money they make a lot of money it's it's tougher in the ticket sales of the equity -- that you don't have YouTube was you were supporting you are supporting.
You know -- that's a Wall Street firms do they they get inventory trade with them and I think it's part of that if it's not -- -- a proprietary trade we actually.
It on your own behalf going out and had taken proprietary bets.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- From what I understand he still could support customers thank god which is what Wall Street firms do.
And that's really do make money.
That said that's -- that's probably a place as you mentioned they're gonna cut because of the various rules in effect.
But we don't know it's it's January.
I will say this -- you know this is not the first round of layoffs at Morgan Stanley it's it's maybe the third I can't I can't count.
But it does say something you know just extrapolate this out about wall to Wall Street is very very nervous about the future even if we don't -- the fiscal cliff.
I mean I guess that Wall Street sort of fantasy would be they come to date they impose Simpson Bowles right.
You do you do -- radical sort of change of the tax quote take down the rates close the loopholes do some with the deficit.
That's probably not gonna happen you know -- we're lucky if we get some sort of deal -- get -- beyond the fiscal close with those automatic tax increases and budget cuts kick in.
That a pretty owners are people say cigarettes and as the recession would even take that out of it.
Wall Street is I just.
They're just increasingly pessimistic about the future stuff -- -- you've got I've got to Dodd-Frank coming you've got Basel III you've got regulations in every single nation to which you have -- -- would fight here let's just make sure people know that those little things you just saw on the screen.
And out of Morgan -- not cutting Medicare that's what happens with the fiscal cliff I think right.
But I'm pretty sure I was -- it was as funny.
Remember we're Citi cuts in Medicare I think they took our our comments from what city laid off 111000 people and we said don't do that in December of you have to do it do it and Novell and the plane I react that I could say I don't I know him pretty well these bad press he's a good guy and he's not he's -- evil guy but not at all.
Totally opposite very very rational nice Smart guy.
He does though have a firm to run -- -- you know an outlook business he has economic realities and what we're -- -- news give you.
The economic realities of -- it's and the question is.
How much of the firms do what what is Goldman do I mean I hear -- could be -- there as well.
So this is every form is going through it I don't think Morgan Stanley will -- is the this as Citi.
-- had a lot more to do bigger firm more unwieldy.
I think they'll do kind of I don't mean by catching up to America may not we've seen in America -- -- we also support -- one other thing about Wall Street there was overreact.
-- -- twenty years they've been overreacting for twenty years.
Remember they cut back and then things -- better than go crazy hiring so remember they have the pendulum falls -- short memory -- -- Charley thank you.
-- -- -- -- I'm taking orders for chocolates -- Sparked by me chocolate.
Holidays are pregnant about -- -- but that he had mostly the older kids eleven and a cat hair -- that it not be like that chart -- -- -- -- -- like okay we.
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