This weekend Morgan Stanley is in talks with John Mack “the knife”, the bank’s former president, to replace Phil Purcell, the man who befriended and then ousted him four years ago.
Purcell’s succession is the hot topic on Wall Street. Rumours of an imminent announcement swept bank offices on Friday. Many are predicting white smoke as early as this week should Mack and the board come to an agreement.
But sources close to the bank are urging caution. Other candidates are still believed to be in the running, including former Goldman Sachs co- president John Thornton, Robert Rubin, the former Goldman co-chairman who now heads Citigroup’s executive committee, and Black Rock chairman and chief executive Laurence Fink.
Morgan Stanley is refusing to comment on its succession plans.