Lunchtime links: Morgan Stanley plans to hire hundreds

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Morgan Stanley has conceded that one of the reasons it hasn't done very well (it posted a second quarter $159m loss) is that it may have cut staff too vigorously towards the end of last year and is now looking to make amends.

The Wall Street Journal reports that the bank is planning to recruit for up to 400 sales and trading roles, split equally between fixed income and equities in a bid to boost the bank's ability to handle increased client demand.

While Morgan Stanley's hitherto cautious approach could be construed as sensible in the current climate, it's one that has caused the bank to lag behind its rivals most of which have posted bumper profits, particularly within fixed income.

So far, it's hired from Credit Suisse, UBS (obviously), Citigroup and JPMorgan.

"These hires are a good step because Morgan Stanley cut back substantially from fixed income in 2008, and they just didn't anticipate the big recovery," said Brad Hintz, an analyst with Sanford Bernstein.

Morgan Stanley is following a similar track to UBS, who admitted the need to build its FICC team following a series of exits, but on a much larger scale.

It may also be expanding into retail banking (Deal Journal)

Citigroup hires 20 for European equity research (Financial News)

Deutsche Bank's wealth hiring spree (Citywire)

Central bankers converge on Jackson Hole to assess recovery signs (Telegraph)

Will BarCap's hiring spree prove costly? ( Financial News)

Grübel's uphill struggle (Financial Times)

...but UBS may have started to turn a corner (New York Times)

Obama's hands off approach to pay at bailed out firms (Bloomberg)

"Blankfein also developed some pretty bad habits. Once upon a time, he smoked two to three packs of cigarettes a day. He was overweight. He often dressed inappropriately or ostentatiously. And he had a love of gambling in Las Vegas." (Dealbreaker)

The great banker migration (Bloomberg)

John Mack among 'sexiest CEOs alive' (Business Insider)

"I think there's a gap in the market here, for a new high-end management consultancy, and/or boutique investment bank, which only hires people with tattoos and which doesn't employ a single MBA." (Felix Salmon)

Management shake-up helps private equity firm Caldover (Financial Times)

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