Entries tagged "Mack"
Less than a week after John Mack announced his pending retirement as CEO of Morgan Stanley, his heir, James Gorman, is possibly facing a daunting decision: managing Smith Barney by itself.
Talk about John Mack's eventual replacement as Morgan Stanley's CEO is beginning to grow.
When Mitsubishi UFJ Financial Group Inc. agreed to invest $9 billion in Morgan Stanley, it was viewed as a capital infusion in exchange for a 21% stake in the U.S. bank. In the two weeks since, Morgan's stock has cratered, and based on Thursday's close of $12.45 a share, Mitsubishi UFJ's investment would buy 65% of the bank. Now, with shares hovering in the $8 range in Friday trading, it looks like $9 billion would buy Morgan Stanley outright (the last time the firm was worth $9 billion was in 1997 before it merged with Dean Witter). So what...