Morgan Stanley’s two top executives resigned on Wednesday, weakening Chief Executive Philip Purcell’s position in the fight against eight former Morgan Stanley executives pushing for his ouster. The two are Joseph Perella, Morgan’s investment banking chairman and company vice chairman, and Tarek "Terry" Abdel-Meguid, the head of investment banking. The departure of the two prominent managers raises question as to how long Purcell can remain at the helm, or how long the group can remain independent.

"Morgan Stanley simply cannot be managed if this much turmoil exists within," Punk, Ziegel & Co. analyst Dick Bove said. "And if it cannot be effectively managed, I don’t see how Purcell can stay at the top."

The leaving execs plan to stay with Morgan for an unspecified transition period and will add to the sizeable list of managers and traders who fled from Morgan Stanley after disagreements with Purcell. Last month Purcell conducted a management reshuffle by naming Zoe Cruz, former head of fixed income, and Stephen Crawford, the chief administrative officer, co-presidents. Both managers later joined board of directors.