Nomura Holdings Inc., Japan’s biggest independent securities firm, is emulating Morgan Stanley by urging brokers to offer loans and gather deposits as it faces growing competition from the country’s largest lenders.
Citigroup Inc.’s $4.7 billion pretax writedown of its Morgan Stanley Smith Barney stake probably won’t reduce a profit-sharing plan’s award for Chief Executive Officer Vikram Pandit that could total $24 million.
The pitch was enticing. At a time when the Standard & Poor’s 500 Index had suffered a decline of 41 percent in the previous three years, Morgan Stanley was offering its clients the possibility of some relief.
In the clash of the two largest U.S. brokerages, Bank of America Corp.’s Merrill Lynch is generating more profit with fewer people than the business Morgan Stanley formed by buying a controlling stake in a venture with Citigroup Inc.’s Smith Barney.