What If There's No Money to Be Made Working on Wall Street?

It's been reported that Morgan Stanley (NYSE: MS  ) CEO James Gorman will be seeing another pay cut this year. This continues a trend in the investment banking industry of constrained pay and cutting-back of jobs. However, looking at fourth-quarter results -- though we don't want to base too much on a single quarter -- it appears that such cutbacks have had little impact on investment banks' performance, as they performed well during Q4.

Looking at the bigger picture, what will it mean for the broader economy if the pay and/or jobs aren't there like they used to be in investment banking? One possibility is that a whole slew of hungry and talented workers, who would otherwise be chasing after Wall Street paychecks, might be inclined to pursue more, shall we say, "productive" endeavors instead. Check out the video below for Fool financial analyst Matt Koppenheffer's take on the subject.

And with big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this, too, is the new norm or if finance stocks are a screaming buy today. The answer depends on the company, so to help investors figure out whether Goldman Sachs is a buy today, The Motley Fool has released a premium research report on the company. Click here now for instant access, and as an added bonus you'll receive a FREE year of key updates and expert analysis as news continues to develop.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2217319, ~/Articles/ArticleHandler.aspx, 10/26/2014 1:19:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 16,805.41 127.51 0.76%
S&P 500 1,964.58 13.76 0.71%
NASD 4,483.72 30.92 0.69%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2014 4:03 PM
MS $34.32 Up +0.36 +1.06%
Morgan Stanley CAPS Rating: ***
BAC $16.72 Up +0.12 +0.72%
Bank of America CAPS Rating: ****
BCS $14.71 Up +0.20 +1.38%
Barclays PLC (ADR) CAPS Rating: ***
GS $183.35 Up +3.29 +1.83%
Goldman Sachs CAPS Rating: ****
JPM $58.74 Up +0.68 +1.17%
JPMorgan Chase & C… CAPS Rating: ****

Advertisement