The bank’s Chief executive James Gorman is planning more job cuts and smaller bonuses for 2013 in an attempt to boost shareholder returns
The axing of 4,000 jobs (7% of its workforce) is already underway and plans are afoot for more cost cutting including lower salaries to bolster returns on equity which were around 23% before the current crisis
“We’re generating 5 per cent, can we get back to 10 per cent? That’s much more interesting to me than can we get back to 15 per cent or will we ever get back to the glory days – those are completely flawed anyway,” said Mr Gorman.
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