Heads Safe At Morgan Stanley

The investment bank has cut it's workforce by around 6% during the last year.

Morgan Stanley Dean Witter & Co's profit fell 16% in the first quarter, the sixth straight decline.

Net income fell from $1bn this time last year to $848m. Net revenues fell to $5.3bn.

Investment banking revenue dropped 30%, advisory revenue 35% and trading revenue 33%.

Crawford was, however, fairly bullish and commented: 'Recent signs in the economy suggest maybe we're getting closer to a turnaround.'

Analysts predict a further fall in earnings in the current quarter, with net revenues rising in the second half of the year.