Management Turnover as Change Agent

Friday, November 30, 2007

Sub-Prime Casualty Toll Claims Another

Zoe Cruz, commonly referred to as one of the most powerful women on Wall Street, appears to have been the latest casualty of the ongoing sub-prime credit crisis. After the market closed on Thursday, Morgan Stanley announced that Zoe Cruz, the co-President of Morgan Stanley, had resigned her position. According to a story by David Wighton in the Financial Times,
The ousting came three weeks after Morgan Stanley revealed it had lost more than $3.7bn on a subprime mortgage bet that went disastrously wrong.

... John Mack, Morgan Stanley’s chairman and chief executive, initially decided to take no action against Ms Cruz after discussing the matter with his board.

But after a longer “post-mortem”, he concluded that changes were needed, according to someone familiar with his thinking.

Sub-prime casualties keep climbing.

For more on the change:

Financial News Update (Dec 10)
Financial News
DealBook Update

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