ML-Implode News - Morgan Stanley to Slash Bond, Currency Trading Jobs

Morgan Stanley plans to slash hundreds of jobs from its debt and currencies division, people familiar with the matter said, revealing that the Wall Street firm believes that a monthslong slump in trading revenue may persist... [eliminating] as much as a quarter of the business's workforce, the people said Monday. The cuts will occur across all of the division's offices, and on each of the firm's trading desks, though London is expected to bear a slightly bigger brunt than New York, the people said.
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The potential cuts reflect Morgan Stanley's acceptance that a slowdown in client activity that took root during the summer months may not reverse any time soon. The New York firm also faces pressure from investors to lift its returns on equity that have often languished below a 10% target set by James Gorman, Morgan Stanley's chairman and chief executive.

New capital rules have penalized big banks for holding vast inventories of bonds and other debt securities, forcing them into difficult decisions on how big their trading businesses can remain in the postcrisis era.

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Morgan Stanley to Slash Bond, Currency Trading Jobs