morgan stanley chairman john mack and citigroup sits down with me and gives reflections of what was it like the last year. and most importantly, what's ahead for the financial services sector. we'll hear from those two gentlemen. >> the most actively traded stocks led by citigroup. i drove my first car from my parent's home in the north of england to my new job at the refinery in the south. i'll never forget. it used one tank of petrol and i had to refill it twice with oil. a new car today has 95% lower emissions than in 1970. exxonmobil is working to improve cars, liners of tires, plastics which are lighter and advanced hydrogen technologies that could increase fuel efficiency by up to 80%. so, at national, i go right past the counter... and you get to choose any car in the aisle. choose any car? you cannot be serious! okay. seriously, you choose. go national. go like a pro. >>> welcome back. let's take a look at some of today's research calls. the latest upgrades and downgrades. dreamworks animation, outperformed citing a strong late of upcoming films.s. and the potential for the stu

thank you. >>> more on john mack's departure from morgan stanley and what is next at the white shoe firm. >>> still to come btoday, remembering events of eight years ago. chairman ceo ludwig will be our guest. stay right here. >>> good morning, a changing of the guard at morgan stanley. john mack out as ceo. what's next for the wall street giant. >>> financial crisis and recovery. treasury secretary fields your questions. tim geithner host ag cnbc town hall last night promising americans that clinics will change. >> people should be angry. people should be deeply angry and frustrated. that's why it's so important we find the will as a country to fix it. >>> country on the role. stocks higher. we will look to the rally. "squawk box" begins right now. >>> welcome back to "squawk box" on cnbc, first in business worldwide. i'm joe kernen with becky quick. carl is off, he really is 39. everybody wants to be 39 again and again and again. he really is. you're not, are you "no, i'm not. >> you can say that. you've got that to look forward to. five straight days of higher -- we're now, with all the angst, people waiting for corrections, 9687, what's next, 11,000 or 8,00

. >> that was john mack, chairman and ceo of morgan stanley.his hour, a banking behemoth falling to its knees. citi now picking up the pieces after a $45 billion lifeline from the government. my interview with vikram pandit, ceo of citi coming up. >>> delta airlines shares coming up today. we'll tell you why when the "closing bell" returns. pothole:h no...your tire's all flat and junk. oh, did i do that? here, let me get my cellular out - call ya a wrecker. ...oh shoot...i got no phone ...cuz i'm a pothole...so....k, bye! anncr: accidents are bad. anncr: but geico's good. with emergency road service. ding! >>> here are some of the other stories we're following on the "closing bell." delta airlines raising operating margin forecast from 3% to 4% because of fuel costs. the carrier also says the important revenue per available seat mile will decline more slowly in the fourth quarter. delta shares gained 59 cents, $8.65 a share. motorola upgraded to buy from new tal, from ubs, to $11.50 from $7.50. it had the introduction of phones running the andr

morgan stanley announced big changes to its top leadership. john mack is stepping down as c.e.o. but staying on as chairman of the investment banking firm on january 1, mack will hand over the reins to the current co-president james gorman. since 2005, under mack's leadership, shares of morgan stanley have fallen about 34%. but shares at rival goldman sachs, have surged about 70%. >> paul: stocks got off to a slow start on wall street today, but ended with another positive close, it's 5th straight session to the upside. an upbeat forecast from texas instruments combined with procter & gamble's prediction for improved sales to boost stocks. adding to the bullishness, a better than expected drop in new weekly jobless benefit claims. the upward trend continued through the afternoon and strong demand for an auction of 30 year t-bonds helped the market end at the day's highs. >> susie: president obama was talking up the need for healthcare reform today a day after his blunt address to congress. speaking to an audience of nurses the president said the number of uninsured americans rose by 6 million in the past y

chairman of the company. he'll be replaced as ceo by james gorman, the co-president of morgan stanley. the management changes are going to be taking effect early next year. so once again, john mackpping down as ceo of morgan stanley, or i should say early next year. he'll be replaced by gorman. bill mack will remain as chairman. >> we should point out it was expected that mack would step down next year. as he approaches the end of his contract. and his retirement. and it was also expected that gorman would take his place. not necessarily an upset that we learn this now. but possibly an orderly succession plan here? >> that's right. it certainly gives investors times, and as you said an orderly succession plan in place. it has certainly been suggested that mr. gorman would take his place as ceo. >> morgan stanley shares up about .25%. off of the higher levels, before this news, we've got $28.63 a share on morgan. we've got the closing countdown right after this short break coming next. >> after the bell, moody's on u.s. banks. we'll get an inside look at the health of the banking system from the ceo of bank united, ahead at 4:00 p.m. eastern. you're watching cnbc, first in busine

john mack will stel down as ceo of morgan stanley. and keep the chairmanitle effective january 2010. joining me charlie gasparino to talk more about this. i just hung up with morgan stanley and they do con firl this is part of an orderly succession plan, that this was an 18-month process, in fact, where john mack discussed his succession with the board 18 months ago and has said throughout that period, till today, that when it came to his 65th birthday, he wanted to step away from the ceo role. his 65th birthday is this november. do you have any other information on this? >> i actually broke this story a month ago, where i said point blank, john mack will be stepping down before the end of the year as ceo, remain as chairman. jim gorman who runs the brokerage division will eventually be the ceo. you remember when i broke that, it was right around the time of second quarter earnings, which were extremely disappointing. yes, they've thought about success for a long time. i really do think there's an issue here about the board being a little bit uneasy about

john mack of morgan stanley. late today it was announced that mack is stepping aside as ceo. he's going to stick around as chairman. now, brace for the fallout tomorrow. was this an orderly transition or a firing squad execution? did the feds push him out of the ceo job? should they have? all day you're going to hear people taking shots at him, that he failed at risk management, that he earned too much money when american pensioners are suffering. that he blew it with peek wide capital, one of the first hedge funds to start teetering on the brink as the meltdown began. i would like to take the other side of that trade. john mack is a hero of capitalism helping his company revive. he's a hero because he's standing at all. in this atmosphere, mere survival is a triumph of. so tonight, we salute you. hang on and hang in there, sir. you know, the john mack news so far is not having much impact on the moore gan stanley stock and the price trading afterhours. but will it have an impact on the immediate and long term. dick, what's your take on the announcement today. >> i'm clearly on the other side. you take a clear loo

john mack will remain as chairman. and this is a big question here is does this change anybody's outlook on morgan stanley?he fact of the matter is yes, it's towards the top of the best breed. not the best in breed but it did miss a lot of opportunities to make money on its prop desk. >> well i think that had nothing to do with his decision an one thing is clear is morgan stanley through the acquisition of the smith barney assets. and the strength of their own franchise may be taking a slightly different tack. gorman as the new head, again, this is not new news. i think that you kind of move on with this one. i don't think this is affecting the stock. i don't think it affected it today and i don't think if you're going to is a substantial change in their strategy. this lack of risktaking a think shareholders ultimately is a great thing. >> the only problem is the wealth management franchise, clearly is what they're focusing on if we're to take gorman's appointment is a real challenging space because do you have companies like schwab and independents really challenging that franchise. >> this is expected. y