Morgan Stanley shakes up management as Gorman preps for CEO spot

Morgan Stanley shakes up management as Gorman preps for CEO spot
Morgan Stanley elevated its chief financial officer to a new role as co-chief of investment banking and global securities trading Tuesday as part of a management shake-up ahead of James Gorman's assumption of the CEO role on Jan. 1.
DEC 29, 2009
Morgan Stanley elevated its chief financial officer to a new role as co-chief of investment banking and global securities trading Tuesday as part of a management shake-up ahead of James Gorman's assumption of the CEO role on Jan. 1. Gorman, who is 51, succeeds John Mack, 65, who will remain as chairman. Colm Kelleher, who had been chief financial officer, will run Morgan Stanley's institutional securities business along with Paul Taubman, who had been head of investment banking. Kelleher is 52, and Taubman is 48. With Kelleher moving to a new position, Ruth Porat will take over as chief financial officer. Porat, 52, was previously the global head of Morgan Stanley's financial institutions group. Reports indicate that Mitch Petrick, 47, who has been Morgan Stanley’s head of sales and trading for two years, is stepping down from that position. Petrick is said to be considering other roles at Morgan Stanley. The Wall Street firm came under criticism earlier in the year for being too conservative in its trading, even as rivals like Goldman Sachs Group Inc. and JPMorgan Chase & Co. used riskier positions to generate huge profits as financial markets rebounded. Morgan Stanley turned a profit during the third quarter — its first in since 2008 — helped by a comeback in investment banking as more companies resumed issuing debt. The bank also is benefiting from its recent purchase of a majority stake in the retail brokerage business now known as Morgan Stanley Smith Barney. Morgan Stanley significantly cut back on its risk taking late last fall at the peak of the credit crisis, when rival investment bank Lehman Brothers collapsed. The bank diversified its operations, including buying the retail brokerage Smith Barney from Citigroup Inc. It also received a major investment from Japanese bank Mitsubishi UFJ to shore up its balance sheet. At the end of the third quarter, Kelleher said trading was one area Morgan Stanley had the most room to grow. He'll now be in charge of ensuring that growth. In other management changes, chief administrative officer Thomas Nides, 48, will take on the additional responsibility of chief operating officer. Jim Rosenthal, 56, will become chief operating officer of Morgan Stanley Smith Barney and head of corporate strategy for Morgan Stanley. Rosenthal is currently is head of technology and operations companywide.

Latest News

Add Commonwealth Financial – a blockbuster – to the list of potential LPL targets
Add Commonwealth Financial – a blockbuster – to the list of potential LPL targets

Chatter about LPL, a behemoth, buying Commonwealth Financial Network, a boutique, has been building all week.

Younger Americans are changing the dynamics of IRAs
Younger Americans are changing the dynamics of IRAs

Millennials, Gen Zs are not following the preferences of older generations.

How does your schedule stack up against a typical advisor?
How does your schedule stack up against a typical advisor?

Report reveals how advisors in RIAs, broker-dealers split their time.

Global stock selloff continues into a third day
Global stock selloff continues into a third day

Tariffs are the focus as risk aversity intensifies.

Gold sets new record at $3,077 as trade war fears rise
Gold sets new record at $3,077 as trade war fears rise

Havens are in demand as investors weigh likely impact of tariffs.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve