Morgan Stanley fired last week a number of senior investment bankers and cut bonuses by about 15% due to lower revenue from transactions and capital raising on wall street, reported “Reuters” informed sources.
Private bankers, according to the Agency, payment of compensation, the size of which varied depending on the work and geographic region, although many have received a lower salary for the year 2016.
Morgan Stanley, which was fourth in the ranking of investment banking fees last year, has cut about 20 managing Directors of its investment banking division, accounting for about 5 percent of the total, the sources said.
According to them, despite the fact that annually, the Bank fired about 5% of employees showing satisfactory results, the reduction of senior bankers this year have been more significant than in the past.
The representative of Morgan Stanley declined to comment. More detailed data on downsizing and compensation the Bank would provide on Tuesday, when will be published the statement of income.
For the past several years, banks wall Street are forced to reduce headcount and cut back on bonus payouts in order to reduce costs. According to Reuters, a Commission for the investment banking operations on wall street in 2016 decreased by 7% to three-year low.