Morgan Stanley makes senior hire in this hot sector
Risk management and compliance are the areas where investment banks are being compelled to hire thousands of new staff, and the people who head the divisions have gone from maligned internal police to senior figures with significant influence within the organisation.
Therefore, moves at the top of the tree are now significant and the latest investment bank to hire in a new risk head is Morgan Stanley. Lee Guy, who spent 10 years working for Barclays’ investment bank, joined Morgan Stanley as chief risk officer for Europe in November, according to sources close to the situation.
It’s another significant exit at Barclays, which has been both ushering managing directors out of the door and losing senior bankers it might have wanted to keep. Guy was latterly co-chief risk officer of the investment bank at Barclays, a position he held since June 2011, and was also a member of its corporate and investment banking executive committee.
He had been at Barclays since 2004, however, having joined from Dresdner Kleinwort, where he was head of market risk management. Guy has a background in trading and worked on the FX derivatives desk in the mid-1980s to early-90s.
Large investment banks are bolstering their risk and compliance functions like never before. Citigroup has added 10,000 risk and compliance professionals despite cutting 30,000 jobs elsewhere, Bank of America has spent $1bn annually on risk and technology to support its markets business, while HSBC has added over 5,200 employees in this area over the past few years.
Morgan Stanley currently has just 45 vacancies in risk management, but the latest hire suggests an appetite to build in this area.
