Why has Morgan Stanley rallied?

John Mack, who delivered a riveting speech at Wharton recently, certainly took his lumps in the financial crisis. There were many calls for him to step down, and his bank was near the brink--but it never went over the edge. For that he deserves credit. He perhaps is getting even more credit for his succession plans, which will elevate James Gorman to the CEO job.

The stock seems to have rallied recently and some analysts cite succession as one reason. Third quarter earnings may have had more to do with it. But there's a general bullishness about the bank these days. The ubiquitous Richard Bove tells TheStreet.com: "I think that his [Mack's] replacement is widely respected and I think that the CFO of the company, this guy Colm Kelleher is also well thought of so I think one big plus is a change in management where universally everyone agrees that the right people are in the right place." This might be the honeymoon. 

For more:
- here's the article

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