Morgan Stanley’s chief brokerage executive steps down

Ed Keller, head of Morgan Stanley’s global prime brokerage business, will resign, the bank said in a memo to employees.

The move was made after the department suffered a US$911 million hit to Morgan Stanley’s profits due to a transaction with the failed family office Archegos Capital Management. Although the bank said it had no contact, Keller would have Retake a new position. problem.

The bank’s three stock co-heads, Alan Thomas, Gokul Laroia, and David Russell wrote in a memo released on Monday evening: “We hope Ed will recover soon, and we hope that he will get well soon. come back to the office.”

Penny Novick and Kim Shaw will succeed Keller as co-heads of major global brokerage operations.

The memo stated that after Keller plans to recover from his health problems, he will take up a new senior advisory position at the bank and approach major clients.

The bank’s main brokerage department can meet the needs of hedge funds and wealthy customers, and provide a variety of services, including Stock lending, leverage and trade execution.

In March, many banks, including Morgan Stanley, suffered huge losses due to the Archegos explosion, and Archegos managed the family wealth of former hedge fund manager Bill Hwang.

Morgan Stanley’s US$911 million blockbuster Smaller than some banks that are slower to exit positions. Credit Suisse lost more than 5 billion U.S. dollars, Bank of Japan Nomura Securities loses nearly US$3 billion. Goldman Sachs escaped unscathed.

Keller joined Morgan Stanley’s prime brokerage business in 2009.

Thomas, La Roa and Russell’s memorandum said: “During these 12 years, Ed is responsible to everyone for the growth of our prime brokerage business and the expansion of our stock franchise to a prominent position. .”

Nickick, 48, is the global head of Morgan Stanley’s global futures and over-the-counter derivatives clearing business. Shaw, 49, is the co-head of major brokerage operations in the Americas. .

Thomas, La Roa and Russell said: “Penny and Kim have worked for the company for more than 40 years, and their key roles throughout their careers in major global brokerage businesses will ensure that we continue to maintain our leading position in the world. First-class main brokerage business.” wrote.