Philip Purcell, chairman and chief executive of Morgan Stanley who is fighting calls for his resignation, has bowed to shareholder pressure to spin off the bank's Discover credit card unit. The move comes after days of speculation that parts of the business may be sold.

The bank has also acted to quell mounting pressure on Purcell by appointing its new co-presidents, Zoe Cruz and Stephen Crawford, two staunch Purcell allies, to the board of directors.