The head of prime brokerage at Morgan Stanley, Stuart Hendel, has resigned to pursue outside interests, according to an internal memo cited in The Wall Street Journal. Hendel is being replaced by Alex Ehrlich, according to the report, who has led prime brokerage services at UBS for the past six years.
Morgan Stanley's prime brokerage suffered massive asset outflows in the wake of the collapse of Lehman Brothers, sources said, as rumors about the demise of the bank holding company's prime brokerage business circulated during that time of uncertainty.
UBS has suffered a series of defections of late, including others from its prime brokerage. Joseph Young, a veteran hedge fund relationship manager, recently resigned after 18 years with the Swiss bank to join Conifer Securities prime brokerage.
Calls to Morgan Stanley were not immediately returned.