Morgan Stanley moved to reassure its investment bankers that this week's management shake-up won't diminish the role of the firm's deal makers.

The New York bank said Monday that investment banking chief Paul Taubman would leave the firm at year-end. Taubman was passed over for a new job overseeing both the trading and investment banking operations, people involved in the process said. The position went to Colm Kelleher, who has overseen sales and trading.