Morgan Stanley (MS) named Leo Civitillo and Claus Skrumsager as global co-heads of fixed-income underwriting, three months after the U.S. leader of the unit was arrested, according to a person briefed on the decision.
Civitillo and Skrumsager will report to Raj Dhanda, head of global capital markets at the New York-based bank, said the person, who declined to be identified because the appointments weren’t made public.
William Bryan Jennings, Morgan Stanley’s U.S. bond- underwriting chief, was arrested in February, accused of stabbing a New York cab driver over a fare. He pleaded not guilty March 9. The company said that month that Jennings has been put on leave.
Morgan Stanley’s fixed-income underwriting business generated $1.36 billion in revenue last year, 32 percent of the company’s investment-banking total. Issuance of global corporate bonds has dropped 3.3 percent this year from the same period in 2011, according to data compiled by Bloomberg. Morgan Stanley is the eighth-ranked underwriter, down from fifth in 2011 and seventh in 2010.
Helen Meates, previously the chief operating officer of global capital markets, will become deputy head of the business, the person said. Daniel Palmer, the firm’s global head of corporate equity derivatives, will add the role of vice chairman of capital markets, the person said.
Civitillo was previously co-head of fixed-income underwriting in the Americas with Jennings, and Skrumsager led the business in Europe. The debt-capital-markets unit previously didn’t have global heads.
Skrumsager and Civitillo were also named global co-chiefs of debt derivatives in October. Skrumsager, based in London, was hired by Morgan Stanley from HSBC Holdings Plc in 2007. Civitillo joined the firm in 2004 from JPMorgan Chase & Co.
Jennings was charged with assault and a hate crime, which each brings a maximum sentence of five years in prison. He was also charged with not paying the fare, a misdemeanor.
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