Morgan Stanley has suffered a fresh round of senior departures as the head of its highly-rated U.S. cash equities business quit last night with a team of seven traders to join rival Deutsche Bank.
Robert Karofsky joins Deutsche Bank in New York as co-head of Americas cash equities, after 14 years at Morgan Stanley. He will also assume responsibility for the bank's direct market access business.
Moving with him are Joseph Ferrarese, who joins Deutsche as U.S. head of cash trading; Donald Healy, Brian Rigney and Eric Shenker, who join as managing directors; and Brian Dugan, William Mathews and John Pastorelli, who become directors.
A spokeswoman for Morgan Stanley, said: "We continue to provide a full, first-class service to our equity clients. While disappointed by the departure of colleagues and friends, we are able to draw off the deep bench of talent to lead the business going forward."
The departures are the latest to hit the bank in the wake of the power battle orchestrated by ex-Morgan Stanely Bankers who are campaigning to remove chief executive Philip Purcell.
Top bankers Joe Perella and Terry Meguid quit last week and Thomas Juterbock, Morgan Stanley's long-serving head of U.S. government bond trading, went this week after 20 years with the firm.