Welcome to Finance Insider, Business Insider’s summary of the top stories of the past 24 hours.
Morgan Stanley No. 2 executive Colm Kelleher said it took a “WTF moment” to trigger a major revamp of his firm’s fixed income business.
Kelleher, speaking at Morgan Stanley’s European Financial Conference Tuesday, described the problems that business was facing a couple of years ago — and how he and Ted Pick, who runs sales and trading, decided to address it.
“Clearly we were all running outsized fixed income businesses — far too much capital, far too much leverage, far too much liquidity trapped in, very sloppy way of dealing with derivatives — all that stuff,” Kelleher said.
In related news, the US head at one of the top trading firms in the world says he’s cracked a Wall Street riddle.
In markets news, stocks are suddenly tanking. Here’s how high-frequency trading has changed the stock market, according to Credit Suisse. And the New York Stock Exchange just had a trading snafu.
On Wall Street, Goldman Sachs is moving hundreds of London jobs before Brexit happens — and more could go. The US bank is also building a robo-adviser to give investment advice to the masses. And Deutsche Bank is rolling out the red carpet for Wall Street startups.
A top Fed official just trolled Jamie Dimon in a fascinating, first-of-a-kind Twitter Q&A. There’s a reason the job market doesn’t feel like it’s back to normal.
And Elizabeth Warren has a major issue with Trump’s new pick for Labour Secretary.
In the healthcare industry, President Trump says he wants to tackle drug pricing in the GOP’s Obamacare replacement plan. A new kind of doctor’s office could lead to much cheaper prescriptions. And something weird is going on with the doctors prescribing one of pharma’s most controversial blockbuster drugs.
The US government has banned laptops on some incoming flights from the Middle East and Africa.
WeWork is raising $US3 billion from SoftBank and its massive tech fund.
Lastly, here are the 25 most popular travel destinations in the US.
INSIDE CREDIT SUISSE: A day in the life of a 28-year-old private banker – Before the 2008 financial crisis, jobs in investment banking and trading were the most sought after by young people interested in finance.
Investors haven’t been this pumped up about stocks since right before the financial crisis – Even with all the seemingly never-ending political hoopla, investors are feeling pretty optimistic.
MORGAN STANLEY: We will “certainly” move people out of London before Brexit happens – Morgan Stanley President Colm Kelleher on Tuesday said his firm will definitely move staff out of London within the next two years — before the end of the negotiation period leading to the UK’s departure from the European Union.
GOLDMAN: OPEC’s oil production cuts were smart but they’re having unintended consequences – The Organisation of Petroleum Exporting Countries made a smart move to limit production, but the move has had some unforeseen effects, according to Goldman Sachs analysts.
Facebook investors are facing 3 big questions – Facebook stock has been a huge winner in the current bull market. The stock is up 21.5% this year and 439% since bottoming out at the beginning of 2013.
MORGAN STANLEY: These 9 tech companies could be takeover targets – Takeover activity has cooled down a bit in recent months, but there are still some big deals on the horizon.
15 expensive steakhouses that are actually worth the price – Carnivores: make your next splurge worthwhile.
This over-the-top $US129 million mansion comes with 12 bedrooms, parking for 150 cars, and its own bowling alley – When real estate mogul Jeff Greene listed his Beverly Hills mansion in November 2014 for $US195 million it was the most expensive home for sale in the US.