(Bloomberg) -- Morgan Stanley (NYSE:MS) picked two of its top bankers to lead the dealmaking group in a leadership shuffle atop one of the biggest banking franchises on Wall Street.
The firm promoted Eli Gross and Simon Smith to run the global investment-banking division, according to a memo to staff Monday seen by Bloomberg News. The pair will replace Susie Huang and Mark Eichorn, who will become executive chairs to lead a newly formed group of senior bankers that drive strategic dealmaking.
The shuffle comes at a critical time for the investment-banking business, which has seen its fortunes fluctuate amid market volatility and fears of a looming economic slowdown. Global merger volume dropped about 17% through the first six months of the year, on the heels of the busiest spell ever in M&A activity.
A policy pivot by the Federal Reserve, combined with worries about inflation and the spillover from the war in Ukraine, have also made the cost of funding transactions uncertain. Banks have been turning more cautious in their lending commitments to help stitch together big deals.
Smith had been atop Morgan Stanley’s European banking franchise over the past seven years and has been with the bank since 1998. Gross has also been at the New York-based firm for the past 24 years, previously heading up its transportation and infrastructure banking practice.
Huang was promoted to co-head of the banking group four years ago, becoming the only woman atop a major Wall Street banking group. She started her career at the firm in 1984 and held various roles in the merger-advisory group before being tapped for the top role in the unit. Eichorn was elevated to help run the banking group in 2012 with the departure of Paul Taubman, who oversaw it at the time.
Both executives were on the operating committee, the select group of senior-most decision makers at the firm.
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