– Richard Debs dies at 93
– Morgan Stanley ‘Mutiny’ in 2005.
Richard Debs, Founding President of Morgan Stanley International, Passes Away at 93
Richard Debs, the founding president of Morgan Stanley’s international arm in the 1970s, has sadly passed away at the age of 93. He died on January 28 at his home in Providence, Rhode Island. The news of his death was confirmed by a death notice in the New York Times and a statement from the American University of Beirut, where Debs served as chairman emeritus.
Born on October 7, 1930, in Providence, Rhode Island, Richard Abraham Debs was the son of Abraham Debs, a Lebanese immigrant, and Madge Fatool. His father lost his small business during the Great Depression, forcing the family to move to Brooklyn to start anew.
Debs graduated summa cum laude from Colgate University in 1952 and went on to study as a Fulbright scholar in Egypt. He earned a master’s degree in international affairs in 1956 and later obtained a doctorate from Princeton University. He also completed his education at Harvard Law School.
In 1960, Debs joined the legal department of the Federal Reserve Bank of New York and quickly rose through the ranks to become an executive in various divisions. He eventually became the bank’s chief operating officer, serving in that position until 1976 when he joined Morgan Stanley.
At Morgan Stanley, Debs played a pivotal role in the firm’s expansion overseas. As the company sought to attract petrodollars from the wealthy oil states of the Middle East, Debs led the effort to establish operations in cities like London and Tokyo. He also oversaw the opening of a liaison office in Cairo.
During his tenure, Morgan Stanley grew its presence in the international markets, with London emerging as the firm’s logical choice for its headquarters in Europe. Debs took on the challenging task of explaining this decision to clients and contacts in Paris.
In 1997, Morgan Stanley merged with Dean Witter Discover Inc., creating the largest US securities firm at the time, named Morgan Stanley Dean Witter Discover & Co. However, the following years were tumultuous for the company, with its market value declining by 28% by March 2005. Debs described the morale within the company as “just terrible.”
Debs became a dissident activist, joining forces with seven other former Morgan Stanley executives to form a group known as the “group of eight.” In March 2005, they sent an open letter to Morgan Stanley’s board expressing their concerns about the leadership of CEO Philip J. Purcell. Under mounting pressure, Purcell stepped down in June 2005, and John Mack took over as CEO.
Richard Debs’ fight with the “group of eight” revealed the fault lines in the US system of corporate governance, highlighting the power dynamics between CEOs and their loyal boards. Debs believed that their victory was a testament to their perseverance and a minor miracle.
Outside of his career in finance, Debs served as an advisory director and chairman of Morgan Stanley Saudi Arabia. He also opened his own consulting firm, R.A. Debs & Co., and advised organizations such as the New York Fed, World Bank, and International Monetary Fund. Additionally, he served as chairman of the board of trustees at Carnegie Hall in New York for five years, leading a successful fundraising campaign during a time of financial crisis.
Richard Debs is survived by his wife, Barbara Knowles, and their two children, Elizabeth and Nicholas.
In conclusion, Richard Debs leaves behind a legacy as a pioneering figure in the financial industry. His leadership at Morgan Stanley, his role in the boardroom coup, and his contributions to various organizations have left a lasting impact. His passing is a great loss to the finance community, and his memory will be cherished by all who knew him..
– Richard Debs Morgan Stanley Mutiny
– Richard Debs Part 2005 Morgan Stanley.
