City jobs axed at Morgan Stanley

Morgan Stanley is cutting 300 credit-related roles globally. Approximately 200 jobs will be axed in the US with the remainder in Europe and a few in Asia, 50 redundancies are to be made in the London office.

The job losses come 2 weeks after the group announced it would make 600 people redundant in its mortgage origination business. The redundancies also follow the news that JPMorgan has also suffered from the turmoil in the credit markets.

Morgan Stanley reported a 70% decline in third-quarter profit at its investment banking division to $296 million (£145 million) after taking a $1.64 billion writedown on the value of leveraged loans and collateralised debt obligations, or pools of bonds, on its books.

JPMorgan’s retail bank, which operates under the Chase brand, recorded a decline in profits of 14% $2.21 billion as falling house prices provoked a sixfold increase in credit-loss provisions to $680 million. However, a slight increase in third-quarter net income, to $3.4 billion, from $3.3 billion the previous year was reported.

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