Mack to Step Down as Morgan Stanley CEO

Morgan Stanley is facing the end of an era as John J. Mack steps down as chief. Relative newcomer James P. Gorman, the man behind a quiet strategy to lure ordinary investors to the bank's brokerage business, will replace him. The New York Times reports that in 2005, cheers erupted when Mack returned to the firm to save the soul of the bank. During the intervening years, he presided over record profits and losses, although overall Morgan Stanley's share price lost nearly a third of its value, diminishing his legacy. The changeover from Mack to Gorman, whom Mack hand-picked for the job, will occur on January 1. Mack will remain chairman.