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Morgan Stanley Poaches Merrill Brokers

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Is Merrill Lynch coming apart at the seams? Morgan Stanley yesterday said it is poaching brokers Merrill as it expands its brokerage business. The story is a blow to Merrill Lynch chief executive John Thain, who recently described the brokerage business as one of Merrill's strongest hopes for future growth.
Morgan's brokerage has been run by James Gorman, Merrill's former brokerage chief, since 2006. It seems that he's exploiting recent troubles at Merrill stemming from credit market losses to lure away his former colleagues. Merrill's suffering stock price has inflicted pain on brokers, many of whom hold large amounts of Merrill stock.