Barton Biggs has tried to broker a peace deal between Morgan Stanley and eight dissident advisory directors who are calling for Phil Purcell, chairman and chief executive, to be ousted.

Mr Biggs, a former Morgan Stanley executive who now manages a hedge fund, was concerned that the public campaign being waged by the former executives would damage the business. According to people familiar with his plan, he was told that some of the eight were interested in finding a way to end what could become a protracted battle.