Morgan Stanley announced that David Sidwell, its executive vice president and chief financial officer, has decided to retire from the firm at the end of 2007.

Colm Kelleher, who currently serves as the Head of Global Capital Markets, will replace Sidwell. Kelleher will join the firm’s management committee and report to chairman and CEO John Mack. Christopher Carter, who is currently vice chairman of Institutional Securities, will succeed Kelleher as Head of Global Capital Markets.

Sidwell, 54, joined Morgan Stanley in 2004. Mack said, “David Sidwell has been a key member of our management team at Morgan Stanley and has helped lead the firm through a period of significant change. His focus, insight and integrity have earned him tremendous credibility – both within Morgan Stanley and throughout the investment community. David informed me last year of his intention to retire, but agreed to stay on through the end of 2007 to ensure a smooth transition. I am pleased that in the months ahead, he will be working closely with Colm to help continue our positive momentum.”

“Colm Kelleher has proven himself a major asset to Morgan Stanley over the past 19 years, not only in his
current role as Head of Global Capital Markets, but also as Co-Head of Fixed Income in Europe. He has been a leader in building client coverage teams and in advocating the further uniting of equity and debt capital markets,” Mack added. “His experience as a business leader, combined with his training and expertise as a Chartered Accountant and his commitment to Morgan Stanley, make him extremely well-suited to serve in this critically important role.”