Morgan Stanley's management shake-up
So what's Morgan Stanley's strategy on FICC sales and trading?
At times, the bank seems to want to scale back just a bit, reducing risks, relying on such activity for less of its revenue, and diversifying into wealth management. But in the end, it wants to have its cake and eat it too. Why not diversify a bit as well as post massive gains in FICC?
Surely, the bank does not want to go slack as a trading entity. Someone's got to give Goldman Sachs a run for their money. Toward that end, the bank has shaken up its management ranks.
"One of Wall Street's most prominent deal makers, Paul J. Taubman, will leave the company, while another executive, Colm Kelleher, will become the sole head of sales and trading. Mr. Kelleher's power within the bank will be rivaled only by Greg Fleming, who oversees the wealth and asset management units, and James Gorman, the chief executive," according to DealBook.
Something like this was not entirely unexpected, as Taubman and Kelleher had been "infighting" for years. CEO James Gorman decided that the unit needed a single leader.
"Behind Mr. Gorman's move was a desire to better align the sales and trading operations with the investment banking arm. The goal is to persuade clients who rely on Morgan Stanley for advice on mergers and stock sales to use it for trading services as well," the article noted.
- here's the article
Are you ready for the new Morgan Stanley?