Morgan Stanley Institutes Hiring Freeze, May Follow Up With "Significant Cuts" If Market Boycott Continues

Tyler Durden's picture

And so Wall Street continues to not grasp that as long as the vast majority of people realize just how manipulated and broken the market is, they will simply stay out of it. Today, Gasparino breaks the news that Morgan Stanley has instituted a hiring freeze and that if the current volume drought which will certainly wreck EPS for Q3, persists in Q4, the firm will follow up with "fairly significant cuts." Since we don't anticipate the corrupt regulators to do anything that will return confidence to capital markets (and no, Brian Sack, closing the market by one penny in the green will not help), and since the 2s10s will continue to flatten, the pain for banks will only get worse and worse. Add on top of that the likelihood that very soon the FASB may require banks to report the actual MTM value of their hundreds of billions in underwater loans, and it becomes increasingly obvious why financials will soon be the industry that drags the entire market much lower.

From Fox Business:



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Dr. Richard Head's picture

Actually he is quite right.  Could be happier really.  Fuck these fiat fools.

nwskii's picture

Nice one, I think a bitchez comment should be mandatory first comment on every article

Jake Green's picture

no, its time for some new schtick

embrace change, bitchez

midtowng's picture

I might even shed a tear out of my one good eye.

What is needed is some sort of law that requires small investors to send all their money to Wall Street so that bank executives can keep getting billion dollar bonuses. After all, they can't trickle down if they don't rob us all first.

Miss Expectations's picture

And that trickle ain't no golden shower...or is it?

Moneygrove's picture

Enjoy working at MCDonalds !!!!!!!! I want fries with that !!!!!!!! think they will still care about bush taxcuts ????????????? lol's picture

you look more like a scum player, in rugby.

Shameful's picture

Good. We don't need humans when we have machines running the market scalping each other and the humans.  Should sell it as the market getting more efficient as the move completely to a web of servers that molest anyone foolish enough to toss a bet out there.  The lower tier Wall Street Warriors can join main street here on Desolation Row.

EscapeKey's picture

"the likelihood that very soon the FASB may require banks to report the actual MTM value of their hundreds of billions in underwater loans"

Is there a way for me to bet this will be extended?

hdunn2's picture

Yes, go long C, mbia/ short sanity.

Blano's picture

I was considering betting a Silver Eagle that it wouldn't happen.

Sqworl's picture

It's a good day for Zoe Cruz HF...:-)

candyman's picture

I thought MTM was dead? I've been waiting for this for 2 years. Where can I follow these developments and who is leading the charge.

Dr. No's picture

MTM will come when the banks need it.  Mostl likely after another melt down when they need a loop hole to help cook the books.

chet's picture

Will financially innovate for food.

carbonmutant's picture

Or you could just license your algos to the retail market...

xi's picture

Treasury curve is flat.  Banks never do well when she is flat with no curves.

MarketTruth's picture

Oh, my poor little heart bleeds out for them.

F#<K "EM!!!!

NotApplicable's picture

Not to worry, the BLS is going to start counting HFT algos as the equivalent of 1000 Wall St. workers, thereby deducing that actual job losses are more than made up for by the space created for the algos to operate in, making job numbers net positive.

UncleFurker's picture


Pink slips on Wall Street? My heart pumps piss for you.


EscapeKey's picture

So, the still can't work out why I don't want to put my savings into their investment accounts?

Because if I do, they will recommend I buy stock as it's about to crash. Their HFT computers will front run my trades. Their "chinese wall" (ie, none) separated computers can work out in a split second at what price my margin call will be triggered, and their HFT computers will take the price there. And if such blatantly illegal behaviour is discovered, they will pay the tiny fine from the proceeds they stole from me, and I will receive ZERO compensation.

And on top of all this, I have to PAY COMMISION FOR EACH TRADE I DO.

So FUCK YOU, Morgan Stanley. The second you start honoring individual investors again, I might consider it, but you SO OBVIOUSLY have no respect for anything but your own pay packages.

Misstrial's picture


Succinctly stated!

~Misstrial's picture

i opened an account with MS , what dumb do do's. i think i knew more than the guy i was given to manage my account. i even made a complaint, they didn't do a stock, you know when you get 2 for 1, right.

CPL's picture

MS and the rest of the fucking dirt bags with the big iron HFT's are getting all ascared they pissed and shit in the the sandbox so much that no body wants to come in and play with them anymore.

boo fucking hoo.

Can't wait to dance on that company's grave and start attacking it's baby umbrella companies.


Dr. Richard Head's picture

Yeah I thought cat shit was bad in the sandbox when I was a kid.  Now you have the filet mignon filled, cocain rolled, alcohol drenched banker turds in the sandbox.  It makes the cat shit look palatable. 

CPL's picture

Agreed, I'll eat a shit sandwich before those half assed scalpers get a nickle of my money or my time to consider their "plight".

Hephasteus's picture

I'll give em a hug. Let me get my knife.

Everyman's picture


carbonmutant's picture

 Well I guess it come down to who makes more money, the bots or the humans...

vote_libertarian_party's picture

So will FASB actually provide very clear, hard to fudge rules?

A lot of what they write is fuzzy guidelines.


Define delinquent, non performing, full payment, current, not delinquent, etc...

Clark_Griswold Hedge Mnger's picture

Don't let the golden door knob hit you in the ass on the way out!

Don't think I'll loose sleep over this one.

espirit's picture

But wait! What happened to Wall Street hiring 2k people?

Hired and fired in an HFT nano...

Shameful's picture

Hmmm, that would be good get these algos working on the BLS.  That should get a good ramp on the employment figures, with the occasional flash crash.

ZackAttack's picture

Also hoping these guys are taking it up the chute on their (supposedly) massive GGB position.

Miramanee's picture

I agree with all of the disgust expressed on these pages. The system is corrupt to its very core. Americans' have virtually no capacity for independent thought. Our brains are saturated with deep fat and heart-wrenching bits of propaganda on the telly by companies like BP and AMEX...and we bite at the bait, every time. Sad fuckers we.

John McCloy's picture

well said Tyler. There is no volume and hardly anyone is left In the game but the primarily dealers. That means there is only each others money left to take and it's time to shank one another in the shower for profits.
Mexican Standoff with financial nukes.

InconvenientCounterParty's picture

Like a good puppet, Gasparino got in the sideways assertion that the Wall Street is good for main street and GOP is the only way to get back the "tailwind".  The real prize is the privatization of SS and medicare. Watch how Wall Street salivates and tries not to let their fangs show.

Samsonov's picture

The conclusion contradicts the event.  The market is manipulated and broken, but it's the manipulators and breakers who are losing money and being driven from the market.  How is this not good news for me, and for us?  The rational conclusion would be that the time to buy stocks is approaching.  When the sharks die off, I can go for a swim.

RmcAZ's picture

Markets are artificially pumped... why can't we have volume artificially pumped as well? Actually, they could just hire a bunch of unemployed people and have them buy and sell stocks to each other... They are employed, volume increases, Morgan Stanley can keep hiring, DOW 36,000, economy solved.

Right? Right...?

CPL's picture

Unless it's government sancitioned it's only a ponzi scheme...

espirit's picture

Please,please,please, more QE2 please!

...or we're going to contribute to the unemployment figures.