New Risk Czar Appointed at Morgan Stanley

Kenneth deRegt, the former head of fixed income at Morgan Stanley, as been hired by the company to advise on risk management, internal controls, and strategy, reports Financial Times.

DeRegt will work primarily with CFO Colm Kelleher, who has been given oversight of risk management, but also closely with Co-Presidents Walid Chammah and James Gorman, on the use of the bank’s balance sheet and with senior management on strategy and internal controls, reports FT.

“Given his extensive fixed-income and capital-markets experience, Ken will be a valuable addition to our senior management team as we look to navigate challenging market conditions and bolster the firm’s risk management function,” said John Mack, Morgan Stanley chairman,  in a memo to his staff.

DeRegt steps in as part of a shake-up of Morgan Stanley’s risk-management unit, from which CRO Tom Daula has been asked to depart. 

Since leaving Morgan Stanley in 2002, deRegt has been managing director of Aetos Capital. After making the decision to return to the company, deRegt has said he will leave the board of KKR Financial. Currently, he serves on the board of Morgan Stanley Capital International.