Morgan Stanley Wealth Management Draws Fed Scrutiny

Rival Goldman Sachs Group Inc., responding separately to its own challenges from the Fed, is seeking to hire hundreds of new compliance staff to help address the deficiencies identified by the central bank, Bloomberg has reported.

At Morgan Stanley, the wealth business has grown into the firm’s biggest engine, responsible for almost half of the company’s revenue over the last year.

Ted Pick is set to become the next chief executive officer starting in January, replacing longtime chief James Gorman, spearheaded the bank’s wealth management expansion and reshaped its identity into a global powerhouse in tending to the fortunes of the wealthy.

Saperstein, who also was a contender for the top post, was granted oversight of the firm’s asset-management business in addition to his role leading wealth management.

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