Greg Fleming was named boss of Morgan Stanley's wealth management unit earlier this year. Since then, he's been busy rejiggering the management team at Smith Barney. The latest: the rehiring of a onetime CFO at the brokerage.
In yet another shakeup at Morgan Stanley, Greg Fleming, president of the bank's asset management and wealth management operations, has hired a former Smith Barney exec as chief operating officer of the joint venture Morgan Stanley Smith Barney LLC.
Jeff Hack previously spent 10 years at Smith Barney, ultimately serving as chief financial officer of the brokerage when it was owned by Citigroup Inc. He left the firm in 2004 and was most recently chief operating officer of JPMorgan Chase & Co.'s worldwide securities services.
Mr. Hack replaces Jim Rosenthal, who was appointed COO of Morgan Stanley in January. In one more sign of the continuing integration of the Morgan Stanley and Smith Barney brokerage businesses that combined more than two years ago, the marketing of the MSSB joint venture will merge with Morgan Stanley's marketing division and report to Mr. Rosenthal.
“This could be a sign that the one brand strategy could be put in place soon,” said Alois Pirker, research director for consultant Aite Group LLC. This year, Morgan Stanley reportedly tested out “Smith Barney”-free monikers for the wealth management division with customers. The firm over the next several years has options to purchase the 49% of Smith Barney that Citigroup still owns, and it has indicated that it will do so.
Mr. Fleming, a former Merrill Lynch executive, was appointed head of the brokerage business along with his duties as president of Morgan Stanley's asset management division this year. He replaced Charlie Johnston, a former Smith Barney executive who remains as vice chairman of MSSB until the end of the year.
The appointment of Mr. Hack was one of several announced by Mr. Fleming in an internal memo to employees yesterday.
Craig Pfeiffer, head of marketing for MSSB, becomes the third vice chairman of the brokerage unit. According to the memo, Mr. Pfeiffer “will join vice chairman Ray Davis in our ongoing outreach program that provides a consistent senior management presence in the branches with [financial advisers] and managers.”
Other appointments include Ben Huneke as head of strategy and business management for MSSB — a new position at the firm. Mr. Huneke was formerly head of the office of business management in Morgan's U.S. wealth management unit.
In addition, Michael Armstrong will now focus solely on his role as head of Morgan Stanley's capital markets division. The international private-wealth-management business he formerly ran will now report to Mr. Fleming's office.
