Notably, sources familiar with the company's layoff plans said the latest round of cuts will be focused on "senior employees", indicative of the investment bank's desire to cut both pay and jobs.
News of Loeb's Morgan Stanley purchase was buried on Wednesday, with his battle with activist investor Bill Ackman over Herbalife taking center stage.
However, as CLSA analyst Mike Mayo noted in a Bloomberg Television interview Thursday morning, Dan Loeb's taking a stake in Morgan Stanley is a 'seminal event'. Mayo argues that activist investors who push for change can do more than regulations. "We need more Dan Loeb than we need regulators."
Morgan Stanley incidentally reports on Monday and investors can expect the focus to be on cost cuts and other restructuring efforts.--Written by Shanthi Bharatwaj in New York.
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