Morgan Stanley's James Gorman, who arrived shortly before crisis, to retire

Morgan Stanley's long-time CEO James Gorman will retire in the next 12 months, he said Friday at the bank's annual shareholder meeting.

Gorman said the bank is looking at three senior internal candidates to be the investment bank's new top executive. Gorman said he plans to remain at the bank as executive chairman of the board for a period of time after a successor is named.

Gorman joined Morgan Stanley as chief operating officer of its Global Wealth Management Group in early 2006 and was co-president of the Wall Street bank within a year.

Gorman became CEO in 2010 in the wake of the financial crisis, when the storied investment bank came dangerously close to collapsing. Morbding securities and making deals grew highly volatile.

Gorman made it his mission to stabilize Morgan Stanley's business for the long term. The firm built out its wealth management business substantially, a business that brings in regular fee income instead of when deals close, and a division he was very familiar with. Morgan Stanley also bought E(asterisk)Trade and Eaton Vance to further build out its wealth management business.

That arm of the business now makes up roughly half of Morgan Stanley's revenue.