There's been lots of talk of layoffs on Wall Street, especially at the big firms. The likes of analyst Meredith Whitney are convinced they are coming. But not at Morgan Stanley (NYSE: MS) apparently--at least not in the fourth quarter.

CEO James Gorman was in a meeting with employees after the third-quarter loss was reported and was asked whether the firm's hiring freeze would translate into job cuts, FOX Business reports. Gorman's answer was emphatic: There will not be job cuts this year. He added that despite the quarterly loss, the firm's fourth-quarter performance will be markedly better.

We can only hope. But the operative phrase here is "this year." It would be hard to let people go now, and deny them a bonus for worked rendered in 2010. We're already seeing some reductions at Knight Capital and DE Shaw, for example.

And 2011 is a whole new ball game. Many are expecting a big surge in pink slips once the new year rolls in. You would have to think that traders and FICC-type employees will be vulnerable. Banks with a promising pipeline will be in better shape. 

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