Morgan Stanley 'starts hiring again'

1 August 2008

US investment bank Morgan Stanley has begun hiring again, with the appointments of several executives in key posts expected to be announced over the weeks to come.

The firm, which has cut 4,800 jobs over the past 12 months in reaction to the downwards pressure of the credit crunch, has now said that the programme of reductions has come to an end.

Morgan Stanley has been one of the worst-hit of the Wall Street firms by the crunch, having suffered around $14 billion of asset writedowns.

Commenting on the move, spokesperson Jeanmarie McFadden said: "We feel that right now, for these markets, we are right-sized."

However, Morgan Stanley might continue to cut in the future if the crunch tightens still further, she added.

"We don't rule anything out. We'll continue to monitor the situation, and we'll adjust as needed."

US banks have cut around 75,000 workers since the onset of the credit crunch last summer.

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