Posted on 01/29/2016 4:34:18 AM PST by 2ndDivisionVet
(Reuters) - Morgan Stanley (MS.N) will be straying ever further from its Wall Street roots in the coming months as it shifts more operations to lower cost cities like Mumbai and Budapest as it aims to slash costs.
The investment bank on Tuesday announced an initiative to cut up to $1 billion by 2017 by using technology and outsourcing jobs now in its New York headquarters and other higher cost cities. However, it declined to give specific details about the number of jobs it would move to lower cost centers.
While shifting so-called back office operations to cities where salaries are a fraction of New York or London is not entirely new, the bank's Chief Executive James Gorman said the pace will now accelerate.
"We have too many employees based in high-cost centers doing work that can sensibly be done in lower cost centers," Gorman said on a fourth-quarter analyst call with analysts....
(Excerpt) Read more at finance.yahoo.com ...
Gee, I guess they couldn’t find a low cost area in the USA. It insults the intelligence......
It amazes me that the banker/investment idiots are so addicted to New York City, and the government guys are so addicted to Washington DC.
They could all cut fifty percent of their costs by moving out to cities like Charleston, Nashville, or Boise.
Goldman has also been moving thousands of jobs to cheaper cities like Salt Lake City, Utah and Dallas over the last several years.
I never knew Salt Lake City and Dallas were in China.
Nothing says ‘highly trustworthy lender’ like basing operations in a city/country where doing one’s business on the sidewalk is an accepted practice.
That happened for a while, but it was driven partly by favorable banking regulations in some states. Delaware was always a place where banks wanted to locate their headquarters. Citibank had a big presence in Sioux Falls, South Dakota for a long time — and maybe it still does.
In case you are sight impared.
...on the other hand, NYC just gave legal assent to the same practice!
And yet the executive staffs of Morgan Stanley and Goldman Sachs are going to support Hillary Clinton for president. The Dems will push for a $20.00 minimum wage and other crazy regulations that make it too expensive to do business in New York and the US, and Morgan Stanley and Goldman Sachs will move more jobs overseas. Its insanity.
How America’s Dullest City Got Cool
http://www.freerepublic.com/focus/f-bloggers/3387606/posts
They could move to NC and do quite well. But the anti American sentiment in this country is strong. Could it be that most Corps are run by stateless Ivy League liberals?
Why not have strict liability for this?
When it goes wrong, clients get treble damages because obviously these banks are grossly negligent
New York City is now one of those cities.
Don’t Be Racist - NYC Okays “Pee In Place” Public Sidewalk Urination
http://www.freerepublic.com/focus/f-news/3388477/posts
Yep, bring them here to Iowa.
We already have a strong financial services base and many other positives here.
Many companies, like Credit Suisse with the Raleigh office, have tried that. They have found that while these areas are low-cost, they can’t find the qualified employees they need there. They try recruiting on the national market, but the skilled guys don’t want to take a pay cut to move there, even if the cost of living is lower.
They could have got people to move there at the right price. Don't BS me. It is called supply and demand. I am not tolerating any offshoring excuses. Screw them all. You want socialism? If corporate America, our supposed friends on the right, have their way we will get there a lot sooner with them leading the way than any democratic congress.
Much less so if they are willing to take people from places like Penn State, Northwestern or Brigham Young.
There are scores of top ranked finance people in places like Wilmington (Delaware), Salt Lake City, Houston and Sioux Falls.
Even our local market of Pittsburgh has its fair share, but again not too many Ivy League types, who turn up their nose at a provincial fly-over town like ours, even though we also have some of the top-ranked universities in the country, including Carnegie-Mellon and University of Pittsburgh.
Another funny thing about the Pittsburgh market is that even with all the big name banks here (PNC, Dollar Bank, Mellon, Citizens) the market is still underserved because they don't care to write loans to locals unless (a)their loans are jumbo sized or (b)their credit is near perfect. So one of the biggest mortgage loan writers is Flagstar Bank, which moved in from Michigan just to write the loans which the locals pass on.
No. a lot of people here attacked me for cursing things like this.
i’m not a capitalist, nor am i a conservative, probably not even a republican. most likely a troll.
get the @#$ out of here. this isn’t capitalism.
do you think Hamilton thought to himself “gee, i hope one day American businesses can ship all their jobs overseas. then my dream will have been accomplished.
I REFUSE to talk with Indians anymore. I make them move further up the ladder until i am on the phone with an American.
their english SUCKS and i am SICK of explaining myself ten times.
and when they tried to send my graphics department to these morons they were so utterly terrible that it closed in two years.
sadly, most are still open as management doesn’t care about quality, just bottom line. so investment bankers spend an extra 30 hours a week trying to figure out advanced powerpoint, photoshop, illustrator, etc, instead of spending those 30 hours bringing in new business.
shrewd.
Perhaps if there weren’t so many “mandatory” benefits companies have to provide. Why would I pay $60 an hour when I can get 4 less-qualified people for a total of $20 a hour. Even if it takes 4 to amount to 1 American’s quality/quantity, I save $40 an hour- no-brainer from a business perspective.
You are the best kind of Conservative because you put America interests first, ahead of corporate profits. You are also Nationalist and that is a compliment.
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