Additional Cuts at Morgan Stanley

or Register to post new content in the forum

43 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Aug 30, 2005 1:17 pm

I'm hearing that there are additional cuts are possible at MS soon.



Can anyone provide additional information or parameters?



Thanks.

Aug 30, 2005 2:37 pm

I have my ear to the ground on this and I think you're just hearing people flap their gums. If there are more cuts it will be Gorman's call and wouldn't happen until he's in place. MS isn't even done swallowing the effects of the last cut.

Aug 31, 2005 1:25 pm

i am hearing $300,000 is the next hurdle.     

Aug 31, 2005 2:44 pm
qwerty:

i am hearing $300,000 is the next hurdle.     



I'm hearing that a cut to $300k would only cut another 15% off (the last cut for above LOS 8 was $225K) of MS's 8100 reps, so they'll cut to $500k instead and cut the rep force to 4500.


The same rumor says the "we survived" party will be held on the moon and everyone will get a new Enzo as a party favor.


Aug 31, 2005 6:15 pm

Anybody know if the fired MS brokers, were able to take their clients to the new firm without a hassle?


i.e. non compete issues and EFL loans that were still outstanding?

Aug 31, 2005 7:23 pm

"Anybody know if the fired MS brokers, were able to take their clients to the new firm without a hassle?"


Grid,


Do you think that MS would just let clients, their accounts, and the revenue derived from such relationships just walk out the door? Do you think they would let their former brokers raid the ongoing revenue stream by not restricting them from doing business? NO, this is a cutthroat business, and MS is doing EVERYTHING in their power to keep the business and make life hell for the brokers they tossed out like trash.

Aug 31, 2005 9:45 pm

Look for them to make another major cut to below 275/300 in late Sept or Oct. Fiscal year end is Nov and they most likley won't do it in Nov allthought they did cut in Nov in 2002.

Sep 1, 2005 9:12 am

Cutting below $500m would take you a lot lower than 4500 reps.  I'll finish around $325-$350 and my rank should be around 3000.  Check the numbers again.

Sep 1, 2005 9:47 am

THe reason that MWD did not give a heads up to their brokers that were below the cut line is so they did not have a chance to move their books to another BD quickly.  This enabled the firm to capitalize on this.


One article I read said that some of the firm's execs and upper management directed the BMs to approach it like this: 


"you are not a fit for our company, but after you leave, your clients will be."

Sep 1, 2005 10:45 am
Spook5365:

Cutting below $500m would take you a lot lower than 4500 reps.  I'll finish around $325-$350 and my rank should be around 3000.  Check the numbers again.



I was just joking about the empty and rather silly speculation running wild here on this board. The part about the survivor's party being on the moon and the Ferrari Enzos as party favors was a joke too.


You don't have to be the sharpest knife in the drawer to know some people here are talking out of their hats. On the last cut it took three weeks from announcement to the actual cut to process. And that cut took away people that by any fair estimation were doing grossly substandard production.


 Now we have people here saying they'll do another cut in 4-6 weeks, which means they'll start the planning for it now, just 2 weeks after the alst cut happened AND they'll do it when they have a retail boss months away from taking control.  What's worse is they're projection cut lines that would cut the company by 25% or more. That's just silly.

Sep 1, 2005 10:47 am
BrokerRecruit:

"you are not a fit for our company, but after you leave, your clients will be."



More like "Your production at your LOS is well, well below industry norms. You'll be leaving, your clients will be staying.". Harsh, but true.

Sep 1, 2005 11:18 am

MSDog:  I obviously knew you were joking on the Enzos (nice idea though) but thought the first part of post was serious.  You're right, the first cut can't even be defined yet in terms of results, so how could another be righ on top of it already?

Sep 1, 2005 12:27 pm

I would anticipate that it will be well-received as far as bottom-line results go.  Especially given the fact that the brokers were not given ample time to move and bring over clients prior to their departure.  If they don't do them by the end of the fiscal year in November, they will do them (assuming they are planning a new round) sometime early, fiscal year 06.

Sep 1, 2005 4:47 pm
BrokerRecruit:

THe reason that MWD did not give a heads up
to their brokers that were below the cut line is so they did not have a
chance to move their books to another BD quickly.  This
enabled the firm to capitalize on this.


One article I read said that some of the firm's execs and upper management directed the BMs to approach it like this: 


"you are not a fit for our company, but after you leave, your clients will be."





You hit the nail on the head. 



That's why it's important for EVERYBODY working in this industry to put themselves first and have no concern for their firms.



I'm sure some of the people who got whacked had a good idea they were
going to get whacked.  I would hope they didn't just sit around
waiting for it to happen, but instead contacted some firms or
recruiters and made sure they had addresses of their clients.



And if another round of beheadings is going to occur, it would be
foolish for those guys to sit around waiting for it to happen. 
The last thing you ever want in your career is loyalty to your
firm--which will toss you out like yesterday's garbage and take your
clients if they so desire.



None of this, "we are letting you go, we wish you the best in your
career."  No, it's, "we are tossing you out and taking all your
clients that you worked so hard to get."



I read some harsh words toward those MS folks who were let go.  But in a way, I do feel sorry for some of them. 



Management is pure evil. 




Sep 1, 2005 5:08 pm

I'll be honest-I called many that were below the line that MWD set.  I would say that nearly half of them felt they were safe and wouldn't even consider looking at other opportunities. 


To each his own.

Sep 2, 2005 2:04 pm

I concur.  Never believe the compnay cares about you.  One day they love you, the next day they don't.  I have seen the biggest A-holes get accolades.  Why?  B/c they do alot of gross.  If they stopped tomorrow, no one would be interested in them. Don't fool yourself.  Take care of you first.  Don't assume your clients care about you or that your company cares about you.

Sep 2, 2005 4:30 pm
BrokerRecruit:

I'll be honest-I called many that were below
the line that MWD set.  I would say that nearly half of them felt
they were safe and wouldn't even consider looking at other
opportunities. 


To each his own.





Yow!!!



They were lulled into complacency by themselves.  Now they are out on their butts.  That's gotta be rough.



I guess it pays to listen when the recruiter calls.

Sep 2, 2005 4:33 pm
frumhere:

I concur.  Never believe the compnay cares about
you.  One day they love you, the next day they don't.  I have
seen the biggest A-holes get accolades.  Why?  B/c they do
alot of gross.  If they stopped tomorrow, no one would be
interested in them. Don't fool yourself.  Take care of you
first.  Don't assume your clients care about you or that your
company cares about you.





Somewhere a couple years ago I read a story about a decent producer (I
don't remember...maybe $500k?) who was in the process of transitioning
to fee-based--as the firm requested--when his production dropped (as
would be expected) and he was fired.



Well, if you do good by your clients, they will care about you.



I was wondering:  what if someone at Morgan Stanley had cancer or
some other health problem and their production dropped as a result
(expectable), would they be fired, too?




Sep 2, 2005 7:29 pm

yes... at any firm, not just at MS..


Sep 3, 2005 10:11 am

WOW!


If that is true it really speaks the truth about wire houses. It looks like you only ask for trouble if you work for them!