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
Stock prices scroll on the facade of Morgan Stanley headquarters in New York.   (AP Photo/Richard Drew, File)
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(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.