The recent upheaval at the top of Morgan Stanley is not only a sign of crisis within that company but also illustrates the unhealthy predicament facing the entire financial services industry. One might question whether any chief executive of a modern, complex financial corporation can control its employees and business divisions. And if not, is the game worth playing?

The troubles at Morgan Stanley began long before last week's decision by Philip Purcell, its chief executive, to promote two rising stars as co- presidents, replacing the brilliant and tough Stephan Newhouse and spurning two other executives, who immediately resigned. That story was not unusual - except for Mr Purcell's promoting a woman to such a senior post, a first for Wall Street. Resignations always follow a bonus and promotion season, as spring follows winter.