Morgan Stanley Freezes Hiring

Morgan Stanley has placed a hiring freeze in its investment banking division.
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NEW YORK (

TheStreet

) --

Morgan Stanley

(MS) - Get Report

has placed a hiring freeze in its investment banking division, a person familiar with the issue told

TheStreet

.

The news was first reported by Charles Gasparino of

Fox Business News

. Morgan Stanley also apparently ruled out layoffs through the end of the year, according to a

Bloomberg

article.

Morgan Stanley's hiring freeze includes its institutional side of the business, which encompasses sales and trading.

The report comes as analysts are expecting weaker third quarter earnings from the investment banks due to weaker trading activity in the quarter.

Jefferies Group (JEF) - Get Report

reported disappointing third-quarter earnings last week on weak trading results.

The hiring freeze will not affect brokers within Smith Barney, Morgan Stanley's joint venture with

Citigroup

(C) - Get Report

.

A Morgan Stanley spokeswoman declined to comment.

Morgan Stanley shares were falling 0.7% to $24.97, shortly before the closing bell.

--Written by Laurie Kulikowski in New York.

To contact the writer of this article, click here:

Laurie Kulikowski

.

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