By Dow Jones Business News, February 28, 2013, 05:35:00 PM EDT
--Morgan Stanley says Simkowitz will become co-head of global capital markets with Dhanda
--Move has prompted speculation firm is shifting executives in preparation for CFO leaving for Treasury Department job
--Simkowitz played big role in Facebook IPO
(Adds information on Morgan Stanley's global IPO ranking in the seventh paragraph.)
By Brett Philbin and Aaron Lucchetti
Morgan Stanley ( MS ) has named Dan Simkowitz co-head of its global capital markets business, according to an internal
memorandum sent to employees.
In the memo, the securities firm said Mr. Simkowitz would share the role with current unit head Raj Dhanda. Mr.
Simkowitz was previously chairman of the unit.
The move for Mr. Simkowitz has prompted some speculation that Morgan Stanley is moving around people in anticipation
of Chief Financial Officer Ruth Porat leaving the firm to become deputy Treasury Secretary. While it is unknown whether
that move will materialize, she has been considered for the job, according to people familiar with the matter. The
position is now closer to being filled since Jack Lew has been sworn in as Treasury secretary.
Both Mr. Simkowitz and Mr. Dhanda have been mentioned as possible candidates to succeed Ms. Porat if she leaves for
the government post. Other people in the financial chief race include Ms. Porat's deputy, Paul Wirth, and the firm's
chief operations officer, James Rosenthal.
In the memo Thursday, co-global heads of investment banking Mark Eichorn and Franck Petitgas said, "We are confident
that this leadership team will harness the necessary resources across the firm to deliver cross product solutions for
our clients and to ensure enhanced connectivity and cross-selling within Institutional Securities and with Morgan
Stanley Wealth Management."
Morgan Stanley has told investors it plans to beef up the collaboration between its brokerage joint venture and
investment banking and sales and trading businesses. The company has said it has more than 35 initiatives related to
such efforts in various stages of execution.
Morgan Stanley has fared well in global capital markets, ranking first in data provider Dealogic's 2012 global IPO
rankings, as it led 60 transactions valued at $10.5 billion. The company, which had an 8.4% market share last year, is
ranked sixth among bookrunners so far in 2013.
Mr. Simkowitz played a big part in Morgan Stanley's lead underwriter role in Facebook Inc.'s (FB) tumultuous initial
public offering last May. The firm was heavily criticized for overpricing the social networking site's market debut
after Facebook's stock declined well below the offering price.
The company was also fined $5 million by Massachusetts securities regulators, who said its investment bankers had "
improper influence" over the research analysts covering Facebook.
Morgan Stanley has said it followed the same procedures for the Facebook offering that it follows for all IPOs.
News of Mr. Simkowitz's move was reported earlier Thursday by the New York Times.
Write to Brett Philbin at firstname.lastname@example.org and Aaron Lucchetti at email@example.com.
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