Morgan Stanley CEO Steps Down, Will Remain as Chairman
Source: http://feedproxy.google.com/~r/ContrarianProfits/~3/JnnWVmfYHBI/20492Posted on Friday, September 11th, 2009 | In Market Commentary
Morgan Stanley (NYSE: MS) Chief Executive Officer John Mack will step down and be replaced by Co-President James Gorman, who has been running the company’s brokerage and overseeing its merger with Citigroup Inc.’s (NYSE: C) Smith Barney unit.
The 64-year-old Mack will remain as Morgan’s Chairman when Gorman, 51, takes over the CEO post on January 1, the company said.
Mack came under criticism as he scaled back Morgan’s risk profile even as rivals like Goldman Sachs Group Inc. (NYSE: GS) regained momentum as the worst economic downturn since World War II began to wane, according to the Associated Press.
“Gorman has really earned his stripes,” Anton Schutz, president of Mendon Capital Advisors Corp., which owns Morgan Stanley shares, told Reuters. “He did a great job at Merrill, he’s doing a good job at Morgan Stanley, and the timing for a change seems to be good, because we’ve made it through the worst of the crisis.”
Before joining Morgan in 2006, Gorman had held a series of positions at Merrill Lynch & Co. Inc., including leading its global private client business from 2001 to 2005.
Morgan received $25 billion in federal funds under the Troubled Asset Relief Program (TARP) last year, and has since repaid the entire amount to the U.S. government.
Source: Morgan Stanley CEO Steps Down, Will Remain as Chairman
Last 5 posts by Contrarian Profits
- The Dollar, the Euro, and being Bullish on Gold - November 20th, 2009
- Audit the Fed – Amendment to a $200 billion bill frightens currency traders! - November 20th, 2009
- What if They Stop Buying our Debt? - November 19th, 2009
- Goldbugs Beware! The tax man cometh! - November 18th, 2009
- Debt – the fall of the U.S. economic empire - November 18th, 2009
Anton Schutz, Associated Press, ceo, Chairman, Chief Executive Officer, Citigroup Inc, co-president, contrarian profits, Goldman Sachs Group Inc, GS, James Gorman, John Mack, Market Commentary, Mendon Capital Advisors Corp., Merrill, Merrill Lynch & Co. Inc., Morgan Stanley, president, Reuters, the CEO post, U.S. government;, United States, USD
ContrarianProfits.com is a financial news and opinion website with a twist. As investment guru Rick Rule puts it, “You are either a contrarian or a victim.” In the financial world, most people are losers because they just don’t know what game they’re playing. They think they can just get “into the market” along with everyone else, do what everyone else does, and they will make money. Not likely. By the time you’ve paid commissions, spreads, fees, taxes – and suffered the consequences of inflation – you’ll be very lucky just to have as much money as you started with.
ContrarianProfits.com is a contrarian site, in the sense that we provide ideas, opinions and recommendations that often run counter to the mainstream financial press. We do this not just to be contrary, but because we’ve realized that Rick is right. You don’t make money by following the crowd; you make money by leading it.
Why is this so? Well, it’s obvious that if you do the same thing everyone else does you’ll get the same results everyone else gets. On average, and over the long run, real investment returns for the typical investor cannot exceed the rate of growth of the economy itself. Everybody can’t get richer faster than everybody else. Real economic growth in the US today averages about 3% per year; if you don’t make any mistakes, that’s about what you can expect. Few people may be satisfied with 3% per year, but most feel comfortable in the middle of the financial herd and are happy to take whatever that gets them. If you’re one of those people, you will probably not like our site. It will make you uncomfortable.
If, on the other hand, you’re willing to look at things a little differently, you’ll appreciate the views of many of our columnists, contributors and visionaries.
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.
September 13th, 2009 at 4:16 am
[...] as he scaled back Morgan’s risk profile even as rivals like Goldman Sachs Group Inc. (NYSE: click for more var _wh = ((document.location.protocol=='https:') ? "https://sec1.woopra.com" : [...]