PERISCOPE

Many big Morgan shareholders--who've watched the firm's stock fall nearly 50 percent in recent years--are outraged, particularly about the pay for Crawford, who was never a star banker or big moneymaker at the firm. "Someone could argue that Purcell's $44 million was necessary to get him to leave," says Rich Ferlauto of the American Federation of State, County and Municipal Employees, which represents public pension funds that hold Morgan Stanley stock. "But Crawford's money was just so out of bounds." Morgan has been flooded with complaints from large investors about the deals, NEWSWEEK has learned, and the firm is bracing for possible shareholder lawsuits demanding the money be returned. Eight former Morgan execs who agitated as a group for Purcell's ouster are also weighing a proxy fight to remove the Morgan board, NEWSWEEK has learned. A Morgan spokesman declined to comment.

--Charles Gasparino and Nicole L. Joseph

DOCUMENTARIES

Broadcast Optimism

After decades of turmoil, you'd be forgiven any skepticism about prospects for peace in the Arab-Israeli conflict. But John Marks, the American creator of a new television documentary about the violence, is convinced the pessimism is counterproductive. "I just find a huge amount of cynicism in the Middle East," he says. To diffuse it, he produced the four-part mini-series "Shape of the Future," which began airing on Israeli, Palestinian and Abu Dhabi TV on July 2. The films feature interviews with moderates on both sides of the security barrier. The basic message: on the traditional obstacles to a peace agreement, the two sides are more in tune than each might think. "[Both] realize it's not possible to win everything," says Marks.

What's most innovative about the films, however, is what they do not show: the familiar scenes of graphic violence. "We made a film without bloodshed," says Marks. "We didn't have to show people with their legs blown off." Of course, the series--containing episodes focusing on Jerusalem, settlements and Palestinian refugees--does rehash some familiar ground, and the overall tone is predictably saccharine. But the filmmaker's good intentions are admirable in a region that could benefit from calm heads and fresh eyes.