San Francisco, 10 September 2009 

Morgan Stanley's John Mack will relinquish the chief executive title and pass the reins onto the current co-president, James Gorman, at the start of next year, the investment bank said late Thursday. 

Mack will continue as chairman of the firm, while London-based co-President Walid Chammah will become chairman of Morgan Stanley Internationa, the firm added.

"John and the board believe James Gorman is ideally suited to lead Morgan Stanley forward," said Robert Kidder, lead director of the firm's board, in a statement. "As co-president since 2007, he has been central to our success in the most challenging period in history and served as a key architect of Morgan Stanley's strategy."

Alistair Barr is a reporter for MarketWatch in San Francisco.

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