Morgan Stanley job cut fears
Morgan Stanley looks set to be the next Wharf bank to make major job cuts as the economic gloom sinks lower over London.
Up to 1,100 jobs are expected to be culled at the American bank's Canary Wharf headquarters, despite recent moves taken to avoid meltdown along the lines of Lehman Brothers. A decision is expected to be made in the next few days.
The job losses would be a further blow to the banking industry but Morgan Stanley co-president James Gorman defended the decision, claiming it was necessary in the current financial climate.
He said: "We're in a period of tremendous dislocation. We're very mindful of the environment we live in at the moment."
Since the middle of last year Morgan Stanley have cut 4,800 jobs worldwide but further redundancies are even though it received a substantial cash injection when it merged with Japanese bank Mitsubishi UFJ.
That move raised $9billion, with a further $10billion coming from the US government bail out.
And the bank converted to a bank holding company in September - meaning it can take deposits - as it started moves to broaden its base to help it survive the crisis.
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