Lisa Shalett is the new chairman and chief executive officer of Alliance Capital's Sanford C. Bernstein & Co. unit to replace Sallie Krawcheck. Shalett had been Bernstein's director of research and will report to Alliance Capital Chairman and CEO Bruce Calvert. Krawcheck left Bernstein to head Citigroup's Smith Barney unit.

Alliance Capital also said that its operating net fell 20.9 percent to $0.47 per unit for the third quarter of 2002 from $0.68 for the third quarter of 2001. The decline came as assets fell 11.8 percent from a year ago to $369 billion from $418 billion a year ago. The firm said the decline was primarily due to market depreciation.

Net asset outflows for the third quarter were $4.3 billion. Net asset inflows in the institutional and private client channels for the quarter totaled $2.2 billion while the retail channel experienced net asset outflows of $6.5 billion including $2.1 billion in cash management assets under management and $1.1 billion from the closing of an Italian sub-advisory relationship.

"Our business continues to be adversely impacted by severe declines in the global equity markets," said Calvert. "Our primary focus continues to be on providing competitive investment results and high quality customer service. At the same time, we are reducing costs where appropriate. Headcount, for example, declined 3.5 percent during the quarter and is down about 6 percent compared to a year ago."  

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