Mack moves on

Finance,like comedy,is all about timing. John Macks was not always good. On returning to Morgan Stanley in 2005,he led a charge into hedge funds,housing and proprietary trading,increasing leverage in an effort to enhance returns. More forgivably,when markets crashed he cut the firms risk-taking so sharply that it missed out on the bonanza as they rebounded. James Gorman,Mr Macks anointed successor as chief executive,will on January 1st inherit a firm that has regained its poise but is still groping for a durable strategy. As he strives to find the right balance between its venerable but volatile securities business and its younger,more predictable retail brokerage,his predecessor will be on hand to offer friendly advice: Mr Mack is moving a few yards away,to the chairmans office.

The EconomistNewspaper Limited 2009