Morgan Stanley's straight-talking new CEO Ted Pick taking charge
Morgan Stanley next week, the three-decade bank veteran's frank manner and steady hand will help him steer the firm through a dealmaking slump. Pick's cool head in difficult situations is an asset, said Tom Glocer, Morgan Stanley's independent lead director since 2017 and former Reuters CEO. "The great sin that gets people into super trouble at banks is the trader's instinct to hold on (to losing positions)...
Ted has that ability to be disciplined" and take action, Glocer said. Over a frenetic weekend in 2021, Pick worked with a team into the night to cut Morgan Stanley's exposure to Archegos Capital Management, said Glocer. The family office's collapse triggered huge losses at global banks.
Morgan Stanley lost more than $900 million in the Archegos ordeal, in what was otherwise a bumper year for the firm. Credit Suisse and Nomura took hits of $5.5 billion and $2.9 billion, respectively, while Goldman Sachs and Deutsche Bank exited their positions relatively unscathed. Pick, 55, will be elevated at a time of heightened economic uncertainty and geopolitical tensions.
Dealmaking conditions are improving, but activity remains dismal, posing challenges for the banking industry. Also Read: Morgan Stanley sees India GDP growth near 6.5% in FY24 and FY25 "He goes from boom to bust easily," said a close friend, referring to Pick's career navigating market cycles. The executive worked alongside Pick for more than 20 years and declined to be identified discussing internal Morgan Stanley business.
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