Morgan Stanley (MS), flush with the billion dollars it saved from axing 4,800 people last year, is poised to scoop up some Wall Street talent dumped by other Street firms in the wake of the credit crunch. CEO John Mack thinks Morgan Stanley can find key talent among the 75,000 people fired so far. FT :
The hires expected to be announced on Thursday point to some of the areas Morgan Stanley wants to improve.
Thomas Wong, a former senior executive at the now defunct Bear Stearns, will take up a new role as head of proprietary trading. Last year, Morgan Stanley had to take a $9.4bn writedown on a disastrous proprietary bet on mortgage securities.
Another former Bear executive, Eric Cole, who was the firm’s head of distressed bond trading, will become co-head of distressed sales, trading and research.
James Brown, a former head of commodities risk management at Merrill Lynch, will become global head of commodities risk, a newly-created post, while Blake O’Dowd will join as head of the restructuring group. He had held a similar position at Lazard.
Morgan Stanley has also been recruiting financial advisors as part of a revamp of its wealth management unit. People close to the bank say it has hired 519 new advisors so far this year, compared with 622 for the whole of last year.
It’s certainly refreshing to hear about an I-bank that is actually looking beyond the credit mess.