James Gorman Replaces Morgan Stanley CEO John Mack

by Tina Kells | September 10, 2009 at 04:13 pm

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There has been an upset at Morgan Stanley after months of unsatisfactory management. James Gorman has been tapped to replace Morgan Stanley CEO John Mack, and many insiders say it is not exactly a welcome change. James Gorman has a reputation as being somewhat vain and personally difficult to work with, and he played a key role in the Morgan Stanley job cuts. Gorman has even been characterized by critics as an "empty suit," all appearances and no substance. However, it is not his personality but his Wall Street reputation that earned him the plum role and the higher ups at Morgan Stanley are happy to see John Mack go.

Morgan Stanley Chief Executive John Mack is stepping down and will be replaced by James Gorman, one of the investment bank's co-presidents, CNBC television reported on Thursday.

He played the role of the axe-man when Morgan Stanley cut back on its retail brokerage business back in the day when every shop on Wall Street wanted to become a prop trading house like Goldman Sachs.

Ironically, Morgan Stanley has reversed itself recently and has been rebuilding its brokerage business. It may be challenging for Gorman to win back the confidence of the men and women in the divisions he cut back so harshly just a few years ago.