Grinding away at expenses.
Even on a newly frugal Wall Street, bank executives remain under pressure to cut more costs.
MarketWatch reports that business conditions in the second quarter improved from a dreadful start to the year, bank executives reiterated at a financial-services conference Tuesday. So long as worries over a U.K. exit from the European Union don’t wallop markets, that should allow banks to deliver better results.
But earnings won’t be so good as to meaningfully lift banks’ prospects. Given that, Wall Street firms have little choice but to keep grinding away at expenses.
James Gorman, Morgan Stanley’s chairman and chief executive, on Tuesday detailed how his already-shrunken firm is cutting down in areas such as nonclient travel expenses. These, he said, are down 50% from a year ago — helping to save as much as $75m annually.
Gorman outlined such savings during a financial-services conference hosted by his firm, detailing the bank’s push to shed an additional $1 billion in annual costs through an initiative dubbed “Project Streamline.”
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