Morgan Stanley Taps Veteran Dealmakers to Run Investment Banking

Morgan Stanley 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.