Bush Cousin Heads to Lehman

Both Goldman Sachs and Morgan Stanley are front-runners in prime brokerage, which has benefited from the growth of hedge funds industry wide. But the size and the position of Lehman in this market is more modest. An industry executive estimates that Lehman runs $2 billion to $3 billion in funds of funds. The firm also has a 20% ownership in Ospraie Management, the $4 billion commodity hedge fund that has suffered losses of late. There is a lot to be done to grow Lehman's alternative business to the next level.

That's perhaps why Walker was hired in the first place. In a move that is uncommon in a firm that rewards the loyalty of long-term bankers, Lehman has offered Walker to join the firm's Executive Committee. "It's a higher position. For him to join the Executive Committee just coming in is a pretty big thing," says this executive.