Cruz(ing) to the corner office

Morgan Stanley chief executive John J. Mack has identified Zoe Cruz, a co-president, who oversees trading and banking, as the leading candidate to succeed him. Mr. Mack has a five-year contract that runs until 2010, and he is not expected to leave Morgan Stanley anytime soon, a source told The New York Times. Citing a senior executive at Morgan Stanley, Mr. Cruz’s candidacy was neither hurt by $3.7 billion in losses on subprime mortgages by Morgan Stanley this week, nor was she tarnished by a brief tenure as co-president under chief executive Philip Purcell, the source said. Other possible contenters to replace Mr. Mack include Walid A. Chammah, the chairman of the company’s European and Middle East operations, and James P. Gorman, who heads the brokerage division.