Morgan Stanley co-president Zoe Cruz will leave
Morgan Stanley has said that co-President Zoe Cruz, one of the most powerful women on Wall Street, will leave in the latest investment bank management shakeup since the summer's credit turmoil.
By Agencies |
NEW YORK: Morgan Stanley has said that co-President Zoe Cruz, one of the most powerful women on Wall Street, will leave in the latest investment bank management shakeup since the summer's credit turmoil.
Robert Scully, who was named co-President along with Cruz last year, will remain at the firm in a new capacity. He will join a newly created Office of the Chairman, and will focus on Morgan Stanley's sovereign investors.
Cruz had been with Morgan Stanley for the past 25 years, and rose to her current title after former chief executive Philip Purcell promoted her in a move to consolidate power. There had been expectations that John Mack, the current CEO, would at some point place someone else in the job.
He did that on Thursday, naming Walid A Chammah and James P Gorman as co-presidents. Chammah, 53, was named global head of investment banking in July, while Gorman, 49, runs the global wealth management group.
Mack said in a statement that both will be able to lead Morgan Stanley during a challenging period. Investment banks have been forced to write down some USD 80 billion of losses in the past few quarters amid a growing credit crisis triggered by a spike in subprime mortgage defaults.
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"We see significant opportunities to build on the market leadership positions we have across our global franchise and to take advantage of the strong foundation we've put in place in recent years," he said in a statement yesterday."Today's markets, however, are changing rapidly, and we're putting in place a leadership team that is ideally suited to help Morgan Stanley realise the opportunities ahead, while continuing to navigate the current challenging condition."(
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