Morgan Stanley lays off private bankers
Several senior figures lose their jobs as weak investment market and intense competition force the global giant to make tough decisions
Morgan Stanley this week laid off several private bankers, including one vice-president and some associates and analysts.
The bank joins several of its peers in Hong Kong that have been firing private bankers, in a year marked by weak markets, dwindling client appetite for investment and trading, and intense competition.
Julius Baer and Goldman Sachs are among others that have also laid off staff recently. Morgan Stanley declined to comment.
For private banks to maintain a profitable business, each relationship manager needs to attract and maintain at least US$150 million in assets to manage, according to Kenny Lam, a McKinsey partner who specialises in private banking.
Individuals who fail to bring in enough assets to manage often face the risk of being laid off after performance reviews, which are usually conducted on a semi-annual or annual basis.
The dismal investment environment in Hong Kong, which has led to much lower than usual trading activity, and the fragmented market - exacerbated by increasing competition from new players - have made this year especially difficult for private banks.
