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Morgan Stanley Hires Brokerage Chief

The Mack era continues to be marked by change.
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Morgan Stanley


tapped James P. Gorman to lead its struggling brokerage unit.

Gorman, 47, joins the big Wall Street firm from rival

Merrill Lynch

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. His appointment comes a week after Morgan Stanley, now led by CEO John Mack and Acting President Zoe Cruz, fired 1,000 brokers in a move to drive out so-called poor performers.

Gorman will replace Ray Harris, who was named interim chief of the Individual Investor Group last month after John Schaefer said he'd leave by year-end. Schaefer was a holdover from the Philip Purcell era, which ended in June when the longtime CEO was forced out over executive suite personnel moves.

Purcell was replaced by Mack, who promptly announced his plan to fire a thousand brokers in a bid to boost the unit's lagging profitability. Last week, the brokers were formally dismissed.

On Tuesday, Morgan Stanley shares fell 64 cents to $52.96.