'I am pleased to announce that Colm Kelleher will become President of Institutional Securities, with management responsibilities for Sales and Trading, Investment Banking and Capital Markets, effective January 2013. As previously announced, Paul J. Taubman has decided to retire from the Firm at year-end. Colm joined Morgan Stanley as an associate in 1989 and has had a number of significant and challenging senior roles since then, including the role of Head of Global Capital Markets and then CFO in 2008/2009. His unique skill set and experience in global capital markets as well as sales and trading make him ideally suited to lead the institutional securities businesses.
Over the past three years we have been relentlessly driving change in the structure of our business to meet the new realities of today. We have made significant progress across the board and recently delivered improved 3Q earnings in a difficult market environment. We must continue our intense focus on improving ROE and executing the levers of cost discipline, capital efficiency and optimizing returns. Aligning sales trading more closely with investment banking and capital markets will allow us to explore and extract new revenue opportunities within institutional securities and better manage our costs.
I am also pleased to announce that Mark Eichorn and Franck Petitgas will become Global Co-Heads of Investment Banking with day-to-day responsibility for all divisional operations, effective January 2013. Mark will continue to be based in New York and Franck will continue to be based in London. They will join the Operating Committee.
Additionally, I have also asked Jeff Holzschuh to become Chairman of Institutional Securities. Jeff is a seasoned veteran banker who will concentrate on the Firm’s key client relationships globally. I am confident that we will continue to build on our leadership position in investment banking and capital markets under Colm and his team.
Mark, Franck and Jeff will all report to Colm. Jeff and Mark will also join the Management Committee, of which Franck is already a member.
Colm, Mark, Franck and Jeff represent the best and brightest of the Firm’s deep bench of talent. This is a new chapter in our evolution, and this new generation of leaders will undoubtedly help guide the Firm to increased profitability and better returns for all of our stakeholders.
Please join me in congratulating Colm, Jeff, Mark and Franck and in wishing them continued success'.