Morgan Stanley Reorganises Equity and Fixed Income

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Morgan Stanley is combining equity financing services, fixed income financing and counterparty credit management into one unit and merging equity and fixed income research as the investment bank proceeds with its growth plan.

The reorganisation was foreshadowed in August when Walid Chammah was named head of investment banking at Morgan Stanley as part of John Mack's first major management shakeup since taking over as chairman and chief executive.

At the time Jerker Johansson, head of institutional equities, and Neal Shear, head of fixed income, retained those roles but were also given additional responsibility as co-heads of institutional sales and trading for the combined businesses.

Johansson, Shear and Zoe Cruz, Morgan Stanley's acting president, said in a memo dated yesterday that the changes "will enable us to identify and help capture new business, particularly by working more effectively with clients across asset classes."

The bank is combining equity financing services, fixed income financing and counterparty credit management businesses under Rich Portogallo, global head of prime brokerage. Portogallo will also become head of US equities, replacing Shel Johnson, who is retiring after 25 years at the bank to pursue other business interests at the end of the year.

Stu Bohart, head of international prime brokerage, becomes global head of prime brokerage, reporting to Portogallo. Jack Inglis and Warren Holmes will become co-heads of prime brokerage in Europe, reporting to Bohart.

Equity and fixed income research are being merged under Juan-Luis Perez, previously head of equity research in London. Perez will move to New York to take up his role. Dennis Shea, head of equity research at Morgan Stanley in New York, will work with Perez on a strategic review and then pursue other opportunities within the firm, according to the memo. Ryan Marshall, head of fixed income research, will have an unspecified role in fixed income.

Stefano Corsi, global head of fixed income sales at Morgan Stanley, becomes global head of distribution for fixed income and equities and will join the equity operating committee.

Morgan Stanley declined to comment.