Morgan Stanley plans to set up a committee to oversee its risk management practices, reported Reuters citing the firm’s regulatory filing. The collapse of the global financial sector due to risky bets on sub-prime mortgages and other bad assets had prompted the New Yok-based lender to take such a decision.
After posting losses for three quarters consecutively in 2008 because of asset write-downs the bank had said that it has cut down its risk taking and aims to keep a close tab on its risk taking ability, reported the news agency.
Morgan Stanley is said to have changed its bylaws to allow it to split the roles of CEO and Chairman to establish the standing risk committee. Earlier, it has been reported that James Gorman would become CEO on Jan 1, 2010 and the current CEO and chairman, John Mack, would retain his role as chairman.
