Flurry of changes at MSSB as Fleming rejiggers

In yet another shake-up at Morgan Stanley, Greg Fleming, president of the bank's asset management and wealth management operations, has hired a former Smith Barney exec as chief operating officer of the joint venture Morgan Stanley Smith Barney LLC
APR 24, 2011
In yet another shake-up at Morgan Stanley, Greg Fleming, president of the bank's asset management and wealth management operations, has hired a former Smith Barney exec as chief operating officer of the joint venture Morgan Stanley Smith Barney LLC. Jeff Hack spent 10 years at Smith Barney, ultimately serving as chief financial officer of the brokerage when it was owned by Citigroup Inc. He left the firm in 2004 and was most recently chief operating officer of JPMorgan Chase & Co.'s worldwide securities services. Mr. Hack replaces Jim Rosenthal, who was appointed COO of Morgan Stanley in January. In one more sign of the continuing integration of the Morgan Stanley and Smith Barney brokerage businesses that combined two years ago, the marketing of the MSSB joint venture will merge with Morgan Stanley's marketing division and report to Mr. Rosenthal. “This could be a sign that the one-brand strategy could be put in place soon,” said Alois Pirker, research director for consultant Aite Group LLC. This year, Morgan Stanley reportedly tested out “Smith Barney”-free monikers for the wealth management division with customers. The firm over the next several years has options to purchase the 49% of Smith Barney that Citigroup still owns, and it has indicated that it will do so.

OTHER DUCKS IN A ROW

Mr. Fleming, a former Merrill Lynch & Co. Inc. executive, this year was appointed head of the brokerage business along with his duties as president of Morgan Stanley's asset management division. He replaced Charlie Johnston, a former Smith Barney executive who remains as vice chairman of MSSB until the end of the year. The appointment of Mr. Hack was one of several announced by Mr. Fleming in an internal memo to employees last Monday. Craig Pfeiffer, head of marketing for MSSB, becomes the third vice chairman of the brokerage unit. According to the memo, Mr. Pfeiffer “will join vice chairman Ray Davis in our ongoing outreach program that provides a consistent senior management presence in the branches with [financial advisers] and managers.” Other appointments include Ben Huneke as head of strategy and business management for MSSB — a new position at the firm. Mr. Huneke was formerly head of the office of business management in Morgan's U.S. wealth management unit. In addition, Michael Armstrong will now focus solely on his role as head of Morgan Stanley's capital markets division. The international private-wealth-management business he formerly ran will now report to Mr. Fleming's office. E-mail Andrew Osterland at [email protected].

Latest News

Morningstar forges fintech partnership with SS&C
Morningstar forges fintech partnership with SS&C

The alliance will give Black Diamond users the first chance to use a newly launched advisory suite as Morningstar shutters a legacy advisor platform.

Passive pressures will drive continued mutual fund consolidation into 2030, PWC says
Passive pressures will drive continued mutual fund consolidation into 2030, PWC says

A continuing shift to low fees, growing dominance of mega-managers, and the clamor for product innovation are set to reshape the landscape.

Amid festering trade tensions, Grantham's GMO launches China-dodging ETF
Amid festering trade tensions, Grantham's GMO launches China-dodging ETF

Notwithstanding a recent tech-driven rebound in Chinese markets, five- and 10-year lookbacks suggest dropping the emerging-market giant is still the winning strategy.

Finra sanctions smoothie-throwing broker over alleged cash reporting failures
Finra sanctions smoothie-throwing broker over alleged cash reporting failures

But the Finra panel's decision against James Iannazzo was not unanimous.

Student debt has a chilling effect on employees' retirement planning
Student debt has a chilling effect on employees' retirement planning

A new study highlights how debt-saddled public and private workers are forced to focus on shorter-term investments and immediate financial concerns.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.