The action, considered a surprise by observers, came three weeks after Morgan Stanley revealed it had lost more than $3.7 billion on a subprime mortgage bet that went wrong.
Though Cruz, 52, had oversight of the part of the business that had the losses, it was believed she had survived the bloodletting that claimed several of her contemporaries. Apparently, The Wall Street Journal said, her leadership style and a bruising 2005 battle for control of the firm played a role.
Robert Scully, an experienced banker and the other co-president, was reported in line for a new position of chairman.
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