The Wall Street Journal reports that Morgan Stanley has named Stephan Newhouse the firm's new President. He will take over from Robert Scott, who soon retires after 33 years with the organisation.
Newhouse looks set to focus, among other things, on developing the firm's global investment banking franchise. He is regarded as very much a client relationship man. Morgan Stanley chief executive officer Philip Purcell has said: 'Since becoming chairman of Morgan Stanley International three years ago, Steve Newhouse has traveled more than half a milion miles to work with clients in every corner of the globe.' The firm will now want to further leverage on this hard work as it sets out to reclaim its M&A crown.
According to Bloomberg data, Morgan Stanley is on the rise in global underwriting and bonds this year. The firm has, however, slipped down the global advisory league table and is currently in a comparatively low fourth place, looking up at Goldman Sachs ruling the roost. And this will hurt. Newhouse's appointment will be just the first move as the firm attempts to reclaim its global advisory throne. Stories about the death of Morgan Stanley's M&A franchise and the firm being an 'also-ran' in global advisory have been much exaggerated.