Morgan Stanley (MS)

[HenryTo]

This isn't too much of a surprise - at least to those that followed the Purcell ouster in 2005.
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Morgan Stanley: Cruz Out As Co-President
Thursday November 29, 5:33 pm ET
Morgan Stanley Co-President Zoe Cruz Will Leave As Investment Bank Changes Top Leadership


NEW YORK (AP) -- Morgan Stanley said Thursday 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 $80 billion of losses in the past few quarters amid a growing credit crisis triggered by a spike in subprime mortgage defaults.

"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. "Today's markets, however, are changing rapidly, and we're putting in place a leadership team that is ideally suited to help Morgan Stanley realize the opportunities ahead, while continuing to navigate the current challenging condition."

There were also major changes in Morgan Stanley's credit and mortgage-related businesses after the investment bank announced it would take a $3.7 billion writedown during the fourth quarter.

Michael Petrick -- who heads the company's corporate credit group -- will become co-head of institutional securities sales and trading. He replaces Neal Shear, who will go back to leading Morgan Stanley's commodities business.

The investment bank also announced that Tony Tufariello, the global head of its securities products group that suffered most of the mortgage-related writedowns, will retire from the company. A replacement has yet to be named.

A spokesman for Morgan Stanley declined to comment beyond the company's statement.

[rffrydr]

Imagine such a report last year. To even be analyzing client flows and seasonality implies a level of stability far more important than 5cents on a quarter. That's bullish in my book too.
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Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Citigroup cuts Morgan Stanley - but interestingly, the stock is actually in positive territory as I am typing this, despite the continued decline in the stock prices of Merrill, AIG, and Lehman.
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Citi cuts estimates on Morgan Stanley
Friday September 12, 1:43 pm ET
Citi analyst cuts profit estimates on Morgan Stanley after Lehman Brothers' poor results

CHARLOTTE, N.C. (AP) -- A Citi Investment Research analyst Friday cut his profit estimates on Morgan Stanley based on recent quarterly results from investment banking rival Lehman Brothers Holdings Inc. and continued weakness in the credit and investment markets.

Prashant A. Bhatia reduced his third-quarter earnings estimate for the New York-based firm to 70 cents per share from 75 cents per share, and his full-year estimate to $3.95 per share from $4 per share. He said the forecast now better reflects the industry's relatively slower client flows combined with seasonality.

Analysts polled by Thomson Reuters, on average, forecast third-quarter earnings of 78 cents per share and a profit of $4.28 per share in fiscal 2008.

Bhatia maintained a "Buy" rating on the stock and price target of $65.

Morgan Stanley shares slipped 52 cents to $38.19 in afternoon trading.

Lehman Brothers on Wednesday reported a $3.9 billion third-quarter loss and slashed its dividend. The 158-year-old investment bank also outlined a plan to sell off its investment management unit and spin off its commercial real estate assets and has put itself up for sale in the wake of a free-fall in stock price this week.