New Morgan Stanley Chief Executive John Mack has had talks with James Gorman, the former head of Merrill Lynch’s private clients business, a...

New Morgan Stanley Chief Executive John Mack has had talks with James Gorman, the former head of Merrill Lynch’s private clients business, about possibly heading up the firm’s ailing brokerage unit, according to a report in The Wall Street Journal.

Mr Mack has also talked to Mark Sutton, who was until late June chief executive of UBS Wealth Management USA and is now chairman and chief executive for the Americas at UBS.

Earlier this summer, Mr Gorman became Merrill's head of corporate acquisitions, strategy and research after successfully reviving the fortunes of the firm’s private client business.

Mr Mack said in a statement this week that the firm’s brokerage unit was "a great asset for Morgan Stanley," adding, "we are strongly committed to it for the long term."

Morgan Stanley is also laying off underperforming brokers and saying it will make some major executive changes in the coming months.