Morgan Stanley still increased its compensation by 8% despite the division's poor performance.
Bloomberg noted that Morgan Stanley raised compensation at its investment banking division 8 percent to $5.74 billion this year through September, even as the unit’s performance suffered amid market turmoil.
The institutional-securities unit generated $12.4 billion in revenue this year through September, excluding accounting gains related to the drop in Morgan Stanley’s bonds and a loss in a Japanese joint venture. That was down from $12.7 billion on a comparable basis a year earlier, according to Bloomberg.
Morgan Stanley’s investment banking unit cut its costs by 31% percent less in the third quarter than in the previous three months.
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