Morgan Stanley, the sixth-largest U.S. bank by assets, has frozen hiring at its investment banking division for the rest of 2010, a person briefed on the decision said.
The company ruled out layoffs through the end of the year, the person said, speaking anonymously because the matter hasn't been disclosed. Morgan Stanley still intends to hire brokers for its joint venture with Citigroup Inc.'s Smith Barney unit, said Jim Wiggins, a spokesman.
The freeze, which includes the sales and trading units, comes as third-quarter trading and equity underwriting volume fell from a year earlier. Morgan Stanley has added about 400 employees to its sales and trading business since June 2009. Its head count was 62,926 as of June 30, up 3% from a year earlier.
