Morgan Stanley is stretching itself thin to keep its workers fat (or at least plump).
Despite plummeting revenues, the big bank has been boosting salaries and plans to hire more workers, specifically traders, according to its earnings conference call yesterday.
It set aside 71% of its second quarter revenue for compensation, a much greater percentage than rivals like Goldman Sachs and JPMorgan. The problem, however, is that Morgan Stanley has a lot less revenue and a lot more employees than those other shops.
Goldman has set aside $386,429 per employee, while JPMorgan routed $232,983 to its workers. Morgan Stanley, meanwhile, only had five figures for its foot soldiers: $95,009.
Dollars from D.C., to D.C.
Finance lobbyists are still in high demand. Some eight bailed out banks spent about $12.4 million to plead their case in Washington in the first half of the year, slightly more than a year ago. (The Hill
Latching Onto a Star
How do you get a job at one of these new boutiques that are being launched by high-flying finance pros? For starters, do your homework. (FINS
The gang over at Mergers&Inquisitions have some advice on how to ace a private-equity case study. (Mergers&Inquisitions
Congress is getting all up in Citigroup
's business. Broadbrush policies are one thing, but lawmakers are calling Citi to protest individual loans. (Bloomberg
finds four cases of surveillance in which it employed external "service providers." That's a heckuva way to treat shareholders. (FT
Treasury No. 2
Obama taps Jeffrey Goldstein, a managing director at Hellman & Friedman LLC
, for a slot directly under Secretary Geithner. (The Deal
Morgan Stanley and UBS
are swapping global heads of prime services. May the best man win. (WSJ
What Happens in PE...
has become a sort of halfway house for controversial executives. The latest example of someone making the jump: former Fannie Mae
CEO Daniel Mudd. (peHub
Todd Harrison has Chapter 7 of his trading memoir up at MarketWatch. This passage recounts his dealings with CNBC's Jim Cramer. (MarketWatch