Gorman to Shrink Morgan Stanley’s Fixed-Income Business
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James Gorman vowed to shrink Morgan Stanley’s fixed-income division after that business posted the largest drop in revenue among Wall Street’s biggest banks.
So-called risk-weighted assets in the unit have already been cut 15 percent in the past nine months, Gorman, the firm’s 54-year-old chief executive officer, said on a conference call with analysts today. The reduction will reach 25 percent by the end of 2013, Gorman said, declining to provide the New York-based firm’s total risk-weighted assets, known as RWAs.