Morgan Stanley is said to have promoted a new generation of investment bankers into leadership roles. But one headhunter says it’s getting harder rather than easier for investment bankers to make managing director (MD).

“My stats tell me investment bankers are being made into MDs less frequently than before,” says Dee Symons, head of the global banking and markets practice at Russell Reynolds. “It’s a symptom of the business environment. People who are running banks now are more likely to come from the capital markets or fixed income side and there are fewer slots for investment bankers than in the past.”

This may certainly be the case at Goldman Sachs, where traders are said to be in the ascendant following the rise of former fixed income trader Lloyd Blankfein to chief executive. But is it really the case at Morgan Stanley?

Last week Reuters reported on an internal memo said to be doing the rounds at Morgan Stanley, publicising the fact that a new generation bankers are to replacing senior dealmakers in leadership roles.

The moves, which will reportedly be effective from December, are said to be designed to free up productive senior bankers to focus on clients and regions.

Morgan Stanley lost numerous senior bankers in 2005 before the departure of former chief executive Philip Purcell. The firm’s latest move looks like a clever way of keeping senior deal makers happy by freeing them of managerial drudgery while satisfying young turks with quick promotion.