Cruz Loses Post At Morgan Stanley

by Stewart Douglas

Story link: Cruz Loses Post At Morgan Stanley

Leading investment bank Morgan Stanley has today announced that its joint president Zoe Cruz is to retire in the wake of its sub-prime losses, in a move thought to be the latest in a succession of top investment managers sacked over the third quarter results.

The 52 year old have been widely expected to become the next chief executive of the organisation until the group announced losses totalling nearly $4 billion earlier in November, as a direct result of its exposure to now worthless sub-prime securities in light of the sector collapse over the summer months.

The move follows similar departures of executives at Merrill Lynch and Citigroup amongst others, as part of an industry shakeup as a result of the widespread losses realised across the investment banking and equity sectors, and will see the search for a replacement begin over the next few weeks.

Cruz had been widely respected throughout the banking and finance industries as a promising talent, and was the top earning woman in finance last year with a paycheque totalling almost £15 million as a result of her influence and impact on the industry in recent times.

However, market analysts David Easthope commented today that reputation counted for nothing when it came to the sub-prime fallout, and the overwhelming need for a symbolic response to extraordinary losses was sufficient to prompt change at the top regardless of standing and stature.

Highly respected Stan O’Neal was forced to retire from post at Merrill Lynch last month following his role in the sub-prime losses sustained by his company, as was high profile Citi executive Chuck Prince.  Zoe Cruz has been apparently no different, despite her good reputation and standing within the industry.