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Big banks unlikely to match Morgan Stanley job cuts in bonds

Although costs and capital will remain under pressure, senior industry executives believe that further front-office job cuts are likely to be modest

James Gorman, CEO, Morgan Stanley
James Gorman, CEO, Morgan Stanley Photo: Getty Images

Will other banks follow Morgan Stanley with more big job losses in fixed income?

When the 25% cuts were announced in December, it was widely dismissed as a one-off. Morgan Stanley had been in a particularly weak position. Other banks were broadly happy with the measures they had already taken to cut costs and reduce capital, executives said. But after some pretty dismal fixed income trading reports from the Wall Street banks, is the outlook gloomier?

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