Mack Shakes Up Heads of Investment Banking

Morgan Stanley has instigated the most radical shake-up of its investment banking department in John Mack's 14-month reign as chairman and chief executive.

The bank has named new managers for four industry coverage groups at the expense of some of its most senior dealmakers and created an investment banking operating committee.

As part of the changes announced in a staff memo by Walid Chammah, Morgan Stanley's global head of investment banking, senior bankers Christopher Harland, Jeff Holzschuh and Michael Zaoui were named vice-chairmen in institutional securities.

In the investment banking division, Dominique Lancksweert has been moved from his position as head of the bank's European financial institutions group to chair a senior client group comprising a small number of senior bankers "with client relationships and influence at the highest levels in Europe," Chammah said.

Gonzalo Gortazar replaces Lancksweert as head of FIG in Europe, while Donald Moore will be chairman of FIG as well as chairman of Morgan Stanley Group Europe. Ruth Porat becomes head of global FIG.

Stuart Epstein and Andrew Tisdale were named co-heads of global media and telecommunications, with Harland to be chairman. Jonathan Grundy and David Nastro were named as co-heads of the bank's utilities and power group.

The bank's new investment banking operating committee will include Chammah, Cordell Spencer, Colm Kelleher, Franck Petitgas, Paul Taubman and on an alternating basis, John Carrafiell and Jay Mantz