Morgan Stanley names former leader as CEO

Morgan Stanley named former President John Mack, above, as its new chairman and chief executive officer Thursday, replacing Philip Purcell at the head of one of Wall Street’s most storied investment banks. The widely anticipated move ended three months of turbulence that had cost the company some of its most talented employees.

The company said Mack would take over immediately from Purcell, who announced his retirement June 13 under pressure from investors and his own board of directors over his leadership style and management of the company.

Survey

Mortgage rates reach 14-month low

Rates on 30-year mortgages sank this week to their lowest level in more than a year, offering a dose of welcome news to prospective home buyers who still face soaring home prices in many markets.

Freddie Mac, in its weekly survey, reported that for the week ending June 30, rates on 30-year, fixed rate mortgages dropped to 5.53 percent, down from 5.57 percent last week. This week’s rate was the lowest since early April 2004, when rates on 30-year mortgages averaged 5.52 percent, a spokeswoman for the mortgage giant said.

Telecommunications

AT&T shareholders OK merger with SBC

AT&T Corp. shareholders on Thursday approved the company’s $16 billion acquisition by SBC Communications Inc. that would create one of the largest phone companies.

About 98 percent of voting shareholders approved the merger with less than 1 percent opposed. About 71 percent of the outstanding shares were in favor.

The merger has won regulatory approval in 26 states and still needs the OK from 10 additional states and the federal government. If it is approved, closing is expected late this year or early next year, an SBC spokesman said.

Worldcom

Ebbers to forfeit assets in settlement

Former WorldCom chief Bernard Ebbers will pay $5 million and transfer nearly all his assets into a liquidation trust to settle civil charges related to the company’s accounting fraud, the government said Thursday.

Federal prosecutors said the trust, which would sell off Ebbers’ assets, would be worth up to $40 million. As a result, prosecutors said they would not seek restitution when Ebbers is sentenced July 13. The settlement is still subject to approval by a federal judge.