Job Cuts at JP Morgan, Salary Hike at Morgan Stanley
Published By : 30 Jul 2014 | Published By : QYRESEARCH
What caused an upbeat start for a group of young bankers at a leading US bank resulted in job cuts at another.
Inside sources claim that Morgan Stanley, one of the leading US banks is all set to reward its junior bankers with salary hikes of at least 25%. JP Morgan on the other hand, another major bank of the US, is on the verge of cutting down its arsenal of technical support staff.
Both decisions are a result of the recent developments in Wall Street. While JP Morgan saw a decline of 15% in trading revenues in its second quarter this year, Morgan Stanley observed a rise in its shares by nearly 27% over the last year. The bank also observed the profits turning out to be more than double in the second quarter, even as bank’s revenues from fixed income trading declined by 17%.
The salary hikes at Morgan Stanley are said to be a part of a bigger initiative for improving workplace conditions of the company and also to make up for the increase in delayed bonuses, which account for a significant part of salaries.
Job cuts at JP Morgan are not completely unexpected; a statement released by the bank in Mark had already mentioned its plans to reduce the global headcount by 5,000 by the end of this year.
Second quarter earnings as well as revenues of JP Morgan have seen substantial reductions in the second quarter of this year, but have still managed to outpace estimates.
Spokesmen from both banks, however, decline to comment about the matter.