Remember how everyone with half a brain said imposing pay restrictions on TARP banks will cause a massive talent drain? At least MS is smart enough to try and keep a portion of the profits by spinning off its top prop desk. Still, cutting out a lion's share of profits will certainly hurt the bank's ability to repay taxpayers and invariably will lead to a weaker bank down the road.
Unfortunately all that Congress cares about is that evil traders can make billions without contributing nothing to society while our amazing public school teachers and autoworkers, who've given this country so much, are out begging on the streets and turning tricks. Of course those traders did make a ton more money for the union pension funds than they ever made for themselves, but hey that's not the key point here.
Unfortunately all that Congress cares about is that evil traders can make billions without contributing nothing to society while our amazing public school teachers and autoworkers, who've given this country so much, are out begging on the streets and turning tricks. Of course those traders did make a ton more money for the union pension funds than they ever made for themselves, but hey that's not the key point here.
 clipped from www.finalternatives.comMorgan Stanley may transform its biggest proprietary trading desk into a hedge fund as a way to sidestep new government restrictions on pay and hiring. PDT has had only one down years since it was launched in 1993, and has earned Morgan Stanley some $6.5 billion in pretax income over that span. PDT’s top traders are reportedly concerned about pay restrictions imposed by the federal government on firms receiving bailout money, as well as those on hiring foreign workers. Any move to spin the group off could be an effort by Morgan Stanley to hold onto talent that might otherwise leave to start their own hedge funds, or to join existing hedge fund shops. |
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