Purcell Set to Retire Amid Intense Scrutiny
Morgan Stanley Chief Executive Philip Purcell announced his retirement last Monday, answering repeated calls for his ouster from investors who have become disenchanted with the firm following the departure of key staff and an eroding share price.
The move comes after nine equity derivatives employees joined more than 30 bankers and traders in leaving the investment bank, dealing a serious blow to its reputable equities unit.
Purcell, 61, in a letter to the firm's employees, said he would retire as soon as a successor is named but no later than the firm's next annual meeting in March 2006. "It has become clear to me, in light of the continuing personal attacks on me, and the unprecedented negative attention our firm and each of you has had to endure, that this is the best thing I can do," Purcell wrote.
The board of trustees has begun a search for a new chairman and chief executive.
ING Recruits Zemsky To Oversee Derivatives
ING Investment Management has appointed Paul Zemsky as the new Head of Derivative Strategies.
Zemsky joins ING Investment Management after 18 years at J.P. Morgan Investment Management, where most recently he co-founded the macro hedge fund, CaliberOne Private Funds Management. At J.P. Morgan, Zemsky also had responsibility for the market timing and sector allocation for the firm's fixed income business.
In his new post, the University of Pennsylvania graduate will oversee derivative strategies for credit, interest rate and equity products. Zemsky will also support the company in a number of key areas, including product development and risk management for both proprietary and third party business. He will report to Greg McGreevey, head of proprietary fixed-income.
Mellon Financial Taps Busch To Run SourceNet Unit
Mellon Financial has promoted Leon Busch to president and chief executive officer of its SourceNet Solutions unit, which handles accounts payable and payroll administration outsourcing solutions. The move is effective immediately. Busch will report to Robert W. Stasik, executive vice president and director of global cash management for Mellon.
In his new role, Busch will oversee SourceNet's efforts to further enhance and deliver the company's range of business process outsourcing solutions designed to allow customers to outsource accounts payable, improve utility bill management and streamline payroll activities. In addition, he will manage the company's efforts to market SourceNet's capabilities globally and further integrate them into Mellon Global Cash Management's working capital management options.
Busch joined SourceNet in 1997 and has since held several positions in operations, client relations and transition management. Most recently, he served as vice president of operations.
Kern Names Kilberg Marketing Director
Kern Capital Management has named Aaron E. Kilberg its new managing director/principal of marketing and client services. A 22-year marketing veteran, Kilberg joins the company from William D. Witter, where he occupied a similar position of managing director/partner of marketing and client services.
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