Goldman Hires Morgan Stanley Asia Banking Head Kate Richdale

By Cathy Chan 

Goldman Sachs Group Inc. (GS) hired Kate Richdale from Morgan Stanley to head investment banking services for Asia excluding Japan as the Wall Street firm looks to strengthen client relationships in the region.

The 13-year Morgan Stanley veteran will be responsible for covering clients in the region, according to a memo obtained by Bloomberg News. Richdale, who was head of investment banking for Asia-Pacific at Morgan Stanley, was also made a partner at Goldman Sachs, according to the document. Edward Naylor, a Hong Kong-based spokesman at the bank, confirmed the memo’s contents. Richdale’s departure follows Morgan Stanley’s deferral of bonuses for some senior bankers and traders over three years, a person briefed on the matter said in January. Goldman Sachs paid employees more in 2012 than the previous year on average as revenue surged 19 percent and it cut staff by 3 percent.

She will report to Dan Dees and Matthew Westerman, Goldman Sachs co-heads of investment banking for the region, according to the memo. Tim Leissner, former Asia head of investment banking services, was promoted to vice chairman of investment banking for the region, Naylor said.

Richdale will join the firm in June and be based in Hong Kong, according to the memo. She had been head of Asian investment banking at Morgan Stanley (MS) since March 2011 and her previous roles at the New York-based bank included chief executive officer for Southeast Asia, the document showed.

Asian Cuts

Morgan Stanley cut about 15 percent of its investment banking positions in Asia starting in mid-January, involving 55 to 60 bankers in the business that was overseen by Richdale, two people with knowledge of the matter said at the time.

Goldman Sachs allocated $12.9 billion for compensation in 2012, up from $12.2 billion in 2011, even as the New York-based bank employed 900 fewer people.

The two Wall Street firms slipped in the rankings for managing Asian stock offerings last year as the volume of sales slumped amid an economic slowdown in China, data compiled by Bloomberg show.

Morgan Stanley was ranked fourth in underwriting equity, equity-linked and rights offers in the region excluding Japan, declining from second in 2011, while Goldman Sachs was fifth, down from first, the data show. UBS AG topped the list.

To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net

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