UBS chair Colm Kelleher said he would like to line up a shortlist of three potential successors for chief executive Sergio Ermotti within the next “couple of years”, aiming to emulate the smooth succession process at his former employer Morgan Stanley. Speaking at the Financial Times’s Global Banking Summit on Tuesday, Kelleher said external hires would be considered to bolster competition for one of the biggest roles in global banking. Morgan Stanley earlier this year had at least three internal contenders to succeed outgoing chief executive James Gorman, before landing on investment banking chief Ted Pick.
Earlier this fall, Morgan Stanley bought $300 million worth of protection against losses on some of its loans from Blackstone Group and other investors, two sources familiar with the matter said. The transaction, details of which have not been previously reported, was effectively insurance, structured as a sale of bonds called credit-linked notes, according to the sources and regulatory filings. By transferring the risk to investors, the $1.4 trillion asset bank could reduce the amount of capital it has to hold against those loans to cover for potential losses.
Zacks.com users have recently been watching Morgan Stanley (MS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.