Morgan Stanley has named Dan Simkowitz as the firm’s co-head of global capital markets, according to an internal memo recently sent to firm employees.
Mr. Simkowitz, chairman of global capital markets, will run the department with the current head, Raj Dhanda.
The move is a promotion for Mr. Simkowitz, who had been rumored to be a contender to become the firm’s chief financial officer. Morgan Stanley’s current chief financial officer, Ruth Porat, is seen as a leading contender for deputy secretary at the United States Treasury Department.
Morgan Stanley’s move to name a co-head of the department has led to speculation that the firm may have other plans for Mr. Dhanda. However, a number of people at the firm played down that suggestion, saying Mr. Simkowitz brings strong client skills to the job, which complement Mr. Dhanda’s mangerial strengths.
Mr. Simkowitz is a well-known figure on Wall Street. He played a crucial role in the 2010 public offering of General Motors. During the financial crisis, he advised the Treasury Department on how best to deal with Fannie Mae and Freddie Mac, the government-controlled mortgage giants. Mr. Simkowitz was also heavily involved in the public offering of Facebook, which ! has drawn criticism from investors who say it was overpriced. Morgan Stanley, which led that offering, has stood by its actions.
Capital markets is a bright spot at Morgan Stanley. In 2012, Morgan Stanley was the top global underwriter of public offerings, according to data provider Thomson Reuters. So far this year it is running fifth.
