The previous head of prime brokerage at Morgan Stanley has quit his role over health issues. The bank has appointed Kim Shaw and Penny Novick as the new global leaders of the prime brokerage division.
Morgan Stanley is bidding goodbye to its head of prime brokerage, Edward Keller, who forfeited his role because of concerns about his health. The announcement was released in a Reuters publication, which published an internal bank memo to the bank’s employees.
However, the company did not release any details about the exact health condition of Keller, who has worked with the firm for many years. Keller started working in Morgan Stanley in 1994 before taking his role as the global leader of prime brokerage in 2009 and has served in the position ever since.
The appointment of Novick and Shaw is a historical record for the company. It will be the first time that the prime brokerage division of Morgan Stanley will be under female leadership.
Morgan Stanley is one of the leading financial firms on Wall Street. The firm was started in 1935, and it has around $3.3 trillion in assets under management.
According to his educational history, Keller is a graduate of Northwestern University’s Kellogg School of Management. This educational background has been instrumental in helping him build a career in the finance sector.
The internal memo by the company recognized some of the notable achievements of Keller in his position. “Ed has been as responsible as anyone for the growth of our prime brokerage business and by extension for the return of our equities franchise to prominence,” Alan Thomas, Gokul Laroia, and David Russell, Morgan Stanley’s three global co-heads of institutional equities,” said the memo.
In another memo, the bank stated that as soon as Keller recovers, he would be absorbed back. However, he would not go back to his former position but rather serve at an advisory position.
Venturing into new businesses
Morgan Stanley has been venturing into new business areas, which has helped the firm achieve growth amidst the recession caused by the pandemic. In February 2021, Morgan Stanley signed an agreement for a $13 billion acquisition of E*TRADE, a discount broker and dealer based in New York.
The firm has also been venturing into the crypto sector. The firm sought to enter into a deal with Bithumb, the biggest crypto exchange platform in South Korea. However, the details of whether the deal has been finalized have not been released.