Fins.com writes that investment bankers and those of us who write about them are acting like nervous party hosts: The trappings are in place for an economic rager; the punch is spiked; but worries about attendance are growing. There are even reports of another widespread round of job cuts on the Street.
What's more plausible than a flurry of pink slips, however, is what we're seeing at Morgan Stanley, a bank that got a lot of heat from analysts for having an inflated comp-to-revenue ratio in the wake of the crisis. Morgan has started cracking down on personal Blackberry use and may cut more underperforming brokers than the 300 or so announced recently. In February, the firm created a new office of expense management in an attempt to save $500 million next year.
Will banking profit margins be leaner for good? Not likely. Will blockbuster bonuses go the way of the shoebox-sized cell phone? Not a chance. But as Morgan has made clear, the largesse in finance is likely to be a bit less widespread for awhile. An investment bank won't lose any top talent over a cell-phone bill or whether the car service sends a Town Car or a limo. But when the big checks go out early next year, there will be even more attention paid to "merit" in a business already known as a pure meritocracy….
http://www.fins.com/Finance/Articles/SB130754467063222291/Are-Wall-Street-s-High-Flying-Days-Over?Type=1&reflink=djp_wsjc
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