Saturday, 27 August 2016
Last updated 16 hours ago
Jun 27 2011 | 3:00am ET
John Mack, the former Morgan Stanley CEO who spent part of his exile from that firm at Pequot Capital Management, will step down as the investment bank’s chairman by the end of the year.
An announcement could come this summer, the Fox Business Network reports.
Mack stepped down as CEO of Morgan Stanley last year, handing the reins to James Gorman, his hand-picked successor. While some at the firm are likely to push for Mack to stay on, that is unlikely, Fox reports, though he could stay on in an advisory capacity.
Mack first left Morgan Stanley in 2001, four years after orchestrating the merger of the firm with Dean Witter; his departure came after a power struggle with Dean Witter’s Phil Purcell, who took over as CEO of the combined firm. After a stint as CEO of Credit Suisse First Boston, he joined Pequot as chairman.
Mack’s tenure at Pequot was not untroubled; he became part of the focus of a congressional probe of a Securities and Exchange Commission insider-trading investigation of the hedge fund. A former lawyer at the regulator claimed he was fired for pushing too hard to interview Mack.
Pequot founder Arthur Samberg pulled the plug on the firm in 2009 in the wake of a renewed insider-trading probe.