'That revenue pool for the industry has been shrinking'.
Morgan Stanley pared its fixed-income trading operation last quarter after concluding the outlook for the business is poor, though job cuts are 'effectively done', Chief Financial Officer Jonathan Pruzan said.
'That revenue pool for the industry has been shrinking, it’s continued to shrink, and we came to the conclusion that we thought the prospects for that revenue pool rebounding anytime soon was very limited', Pruzan said Tuesday in an interview.
Bloomberg News reports that Chief Executive Officer James Gorman, 57, is attempting to strike the right balance in Morgan Stanley’s bond-trading business amid a years-long revenue slide for the industry. The bank said last month that it was taking a $150m severance charge as it pared the business. The cuts affected 1,200 employees, including about a quarter of the fixed-income trading staff, a person briefed on the matter said.
To access the complete Bloomberg News article hit the link below: