Big John Mack, CEO of one of the US super banks is stepping down after a succession of losses and will be replaced by co-President James Gorman in following with the firm's growing emphasis on its retail brokerage.
Sixty four year old Mack, who rose to power after an overthrowing his predecessor, will remain on as chairman of Morgan Stanley, which posted a second-quarter loss of $1.26 billion whilst most other banks showed stronger results, according to figures available to Financial Soultions.
Gorman will take over the helm at Morgan Stanley and join the board as of Jan 1 2010, Financial Soultions understands.
In a statement released by the bank earlier, it was emphasized that Mack had intended stepping down in November when he turned 65.
The beleaguered banks shares have come storming back this year after it fought for survival in the wake of the Lehman Brothers collapse, aided by the U.S. government and a deal from Japanese bank Mitsubishi UFJ that Mack took the lead in arranging.
Financial Soultions understands that while the banks shares have recovered nearly 80% this year, they are still a long way behind their chief adversary, Goldman Sacks Group Inc, which managed an admirable 107% rise in comparison.
