Last Updated Mar 24, 2008 1:32 PM EDT
According to sources familiar with the matter, the cuts are expected to come in the firm's capital markets division, which includes investment banking, debt and equity underwriting and merger advice.That follows news that Citigroup is cutting 2,000 jobs on top of the 4,000 it had previously announced. And we won't even mention Bear Stearns.
Morgan Stanley is signaling that it will follow suit as well, or at least that's the sense you get from between the lines of comments made by its CFO in the company's recent conference call to discuss earnings:
"You can see the total global head count decreased by 2% from the end of last year--.we will be focused intently on this. And we are looking very much at -- as I said, allocation of resources. As soon as we get more clarity, I think we will be able to give you more clarity on where we are going, yeah?"Yeah. As for the silver lining? JPMorgan's CEO James Dimon publicly scolded his brethren for trying to lure away his talent. After all, if you want to hire an investment banker this month, all you need to do is tie a help-wanted ad to a rock and toss it out the window. It's likely to hit an aspiring candidate walking with a box full of stuff vacated from his desk.