The next batch of prop traders heading out the door is at Morgan Stanley.
Leader of the Quants, aka, head of the Process Driven Trading unit, Peter Muller is in discussions with MS to spin off the division and retain a minority stake. Originally, there had been discussions about moving the unit to Morgan Stanley Asset Management, but that seems unlikely to occur. Muller's unit is the last significant prop trading business at the firm.
Muller himself is no ordinary quant. In order to "stimulate productivity and cerebral thinking," he had ceiling lights installed in the office that changed color every 15 seconds. In 2001, he quit working full-time and traveled the world for five years before returning to MS. He's also written crossword puzzles for The New York Times and put out two albums under his own label. And, like any good quant, he's good at poker: he recently brought home nearly $100,000 from a tournament.