Morgan Stanley Chairman John Mack to Retire, Stock Up 7%
Morgan Stanley (NYSE:MS) chairman John Mack will retire as the chairman of the firm by year end. The 66 year old Mack has to give way to Morgan Stanley’s CEO James Morgan according to a power sharing agreement. The would-be chairman seems to have a lesser appetite for risk than his predecessor, with a focus on businesses with predictable fees.
Morgan Stanley’s (NYSE:MS) stock jumped 7%, reacting favorable to the news. However, the investment banking firm is down 40% in the last 6 months.
Though Morgan Stanley managed to avoid the fate of Lehman Brothers and Bear Stearns, it was not without scars: Morgan lost $9 billion in 2007 on proprietary trading and had to run helter-skelter for much-needed funds in order to avoid a run on the bank when Lehman Brothers filed for bankruptcy. Let’s see how the leadership change alters the path of one of Wall Street’s biggest firms.