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Mack Steps Down as Morgan Stanley CEO

Ends tumultuous 4 years, including bank's near collapse

By Jason Farago,  Newser Staff

Posted Sep 11, 2009 5:52 AM CDT

(Newser) – John Mack is stepping down after 4 years as CEO of Morgan Stanley, the bank that nearly succumbed at the height of the financial crisis. Morgan Stanley has seen its reputation suffer in recent years after ill-advised moves into real-estate-backed assets that cost the bank billions, raising questions about Mack's approach to risk. The new CEO will be James Gorman, promoted from co-president in charge of wealth management; Mack will remain chairman.

Stock prices scroll on the facade of Morgan Stanley headquarters in New York.
Stock prices scroll on the facade of Morgan Stanley headquarters in New York.   (AP Photo/Richard Drew, File)
James P. Gorman will succeed John J. Mack as CEO effective Jan. 1, 2010, the investment bank announced Thursday, Sept. 10, 2009. Mack will continue as chairman.
James P. Gorman will succeed John J. Mack as CEO effective Jan. 1, 2010, the investment bank announced Thursday, Sept. 10, 2009. Mack will continue as chairman.   (AP Photo/Morgan Stanley)
Morgan Stanley Chairman and Chief Executive Officer John J. Mack testifies on Capitol Hill in Washington, before the House Financial Services Committee.
Morgan Stanley Chairman and Chief Executive Officer John J. Mack testifies on Capitol Hill in Washington, before the House Financial Services Committee.   (AP Photo/Lawrence Jackson, file)
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COMMENTS
Showing 3 of 4 comments
bewilderbeast
Sep 11, 2009 11:53 AM CDT
I like FARK.com's (probably true) prediction: He has decided to go into packaging and bundling his kid's lemonade stand into collateralized debt obligations.
bewilderbeast
Sep 11, 2009 11:00 AM CDT
So just how large a golden handshake will HE be getting then?
wwwonderer
Sep 11, 2009 4:37 AM CDT
He still has his chairmanship. I'm sure there will be something for him. I often said why hire these clowns to ruin a company for multi-$millions. I'm thinking of getting an MBA and becoming the discount CEO. I'll fuck up anyone's organization, in record time for a mere $500K. C'mon. That's a steal!

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