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Everyone’s favorite New York-based global financial services firm is in the news again. Aren’t you stunned?

And this time the news is just as exciting as it was last week when the company announced the potential for another round of layoffs. You know, on top of the 1,600 jobs that the company already eliminated.

According to a Fox Business report, regulators recently made a push to limit Morgan Stanley’s cash payouts, inspiring the company to reduce its bonuses and “place a ‘cap’ on the cash portion of the annual payouts came after protracted discussions with securities regulators who expressed concerns over the high amount of the firm’s revenue that is dedicated to compensation.”

Morgan Stanley will now pay a greater percentage of bonuses in stock and stock equivalents. This decision has not been well received by some executives.

“There was a lot of crying in the bathrooms at Morgan after the bonus announcements,” one Wall Street executive told Fox Business.

Another executive, identified only as an employee of Morgan Stanley, told Fox Business, “Look at it this way. The regulators are forcing the firms to pay more compensation in equity. That would be OK back in 2006 when our stock was marching higher, but with so many controls on how we’re making money, how is our stock going to get a decent bounce?”

On the upside, Fox said that the unnamed executive believes Wall Street CEOs will use bonus reductions “to slash their workforce without widespread layoffs.” That’s great news, at least in theory. But it might not do much for Morgan Stanley, which may layoff as many as 3,400 employees this year, Fox Business said.

Whether you are in the pool of Morgan Stanley employees who may lose their job or you happen to be in another situation entirely, there is one thing that everyone on Wall Street needs to remember: there is always a place they can call home. At StreetID, we built a financial career matchmaking site designed to help the growing community of financial professionals. With StreetID, current job seekers and those looking to move on in the future can sign up for a free account and make a direct connection with relevant candidates and employers.

Source: http://www.articlesbase.com/finance-articles/did-regulators-cause-morgan-stanleys-layoffs-5605324.html

Reuters – A group of chief executives at more than 200 large U.S. companies urged a federal appeals court to undo a judge’s controversial decision making it harder for companies to settle Securities and Exchange Commission fraud cases.

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AP – Two former CEOs at mortgage giants Fannie Mae and Freddie Mac on Friday became the highest-profile individuals to be charged in connection with the 2008 financial crisis.

View full post on Yahoo! News: Stock Markets News

U.S. and European stocks fell, extending losses from the first weekly decline for global equities in more than a month, as the World Bank said the recession will be deeper than previously forecast. Treasuries rose, while a drop in commodities sent oil below $68 a barrel.

Equities and commodities retreated after the World Bank forecast today the global economy will contract 2.9 percent this year. That compares with a prior estimate of a 1.7 percent decline. Growth is expected to return next year with a 2 percent expansion, lower than the 2.3 percent prediction about three months ago.

Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago. This is a clue that the stock market is already expensive. Sales by CEOs, directors and senior officers have accelerated to the highest level since June 2007, two months before credit markets froze, as the S&P 500 rebounded from its 12-year low in March. The increase is making investors more skittish because executives presumably have the best information about their companies’ prospects.