Morgan Stanley promoted investment banking chief Colm Kelleher to the role of president last week. The move sparked the exit of Glen Fleming, who served as head of wealth management. Media reports speculate that Kelleher is a strong candidate to replace current Morgan Stanley CEO James Gorman.
Fleming was seen as a possible Gorman replacement but lost out in a management shuffle last October. Reuters reports that Fleming e-mailed Morgan Stanleys 15,800 brokers with a warning that 2016 would bring challenges on the horizon beyond Morgan Stanley.
Who were the top Traders moves for December 2015?
One of Morgan Stanleys pain points has been its troubled fixed-income business, which will see the loss of about 1,200 jobs. The firms bond trading revenue dropped 42 percent in Q3 of 2015.
The 57 year-old Kelleher knows about tough financial times — he served as Morgan Stanleys chief financial officer during the 2007 financial crisis. Reuters reports that he helped shrink the banks balance sheet from $1 trillion in 2007 to $659 billion in 2008.
Although Gorman is not poised to leave the Wall Street powerhouses CEO office anytime soon that hasnt stopped speculation. The list of his possible replacements include CFO Jon Pruzan, head of trading Ted Pick, as well as Shelley OConnor, a co-head of Morgan Stanleys wealth management division.
