WASHINGTON Feb 26 U.S. investment bank Morgan
Stanley has rehired Tom Nides to a senior position after
he served as deputy to U.S. Secretary of State Hillary Clinton
for two years.
Nides, who previously worked for Morgan Stanley from 2005 to
2010, will work with clients and management as vice chairman and
report directly to Chief Executive Officer James Gorman, the
bank said in a press release.
Nides rejoins Morgan Stanley at a time when it is trying to
boost returns and Wall Street must implement a raft of new rules
to avoid a repeat of the devastating financial crisis.
While at the State Department Nides represented the United
States abroad as deputy secretary of state and was responsible
for management and resources at the department.
His return to Morgan Stanley is another instance of
Washington's "revolving door" in which people routinely swap
jobs between the government and the private sector, something
critics say can craft overly cozy relations between the two.
Nides has long-standing ties to the Democrats, starting his
career as a staffer for the House of Representatives, and later
working Fannie Mae, the U.S. trade representative, and for
investment bank Credit Suisse.
Morgan Stanley faces a big task for this year: boosting
returns that have lagged peers, in large part because of high
expenses in its wealth management group, and relatively low
revenue in its bond trading business.
Its return on equity, a measure of how well the
bank squeezes profit out of shareholders' money, was just 3.2
percent in the fourth quarter, far below the double-digit
returns of competitors.