This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Wall Street Fixer Goes to Washington

NEW YORK ( TheStreet)--To many members of Occupy Wall Street, the Tea Party, or others who believe Washington has been hijacked by corporate interests, the career of Deputy Secretary of State Tom Nides may not seem especially unusual.

As the most-trusted aide to then-CEO John Mack at Morgan Stanley (MS - Get Report) and Credit Suisse (CS - Get Report), Nides handled everything from renegotiating multimillion dollar pay guarantees to pushing for more generous maternity leave on behalf of the women who reported to him.

During the 2008 crisis, he helped convince the Securities and Exchange Commission to institute a temporary ban on short selling in the hope it would reverse a hair-raising decline in Morgan Stanley's share price, according to the book "Too Big To Fail." (Nides says the book exaggerated his role.)

Now Nides, 50, is effectively the chief operating officer of the U.S. State Department, reporting to Hillary Clinton, whose 2008 presidential campaign he helped finance. His biggest current project is managing the transition of U.S. troops out of Iraq, which Nides says is the largest such transition since the Marshall Plan in 1947. President Obama recently announced U.S. forces will be out of the country by the end of the year, as the State Department steps up its operations there.

The examples of high-powered careers combining government service and Wall Street money-making are bipartisan and far too many to count. Goldman Sachs (GS - Get Report) drew negative attention in 2008 and 2009 for its extensive network of government connections, though that doesn't stop Goldman from picking off the government's best and brightest on a regular basis.

For his former Wall Street colleagues, however, Nides is a bit of an anomaly. Wall Street and Washington are far too cozy for many people, but Wall Street's top executives don't see it that way.

Paul Taubman, who oversees Morgan Stanley's investment banking business and was an early supporter of Barack Obama's 2008 presidential campaign, describes the relationship between Washington and Wall Street as "more polarized than it's ever been."

"Tom is helping to show everyone that you can move even in the current climate from business into government and not have the scarlet letter on you," Taubman says. "I think the fact that he was so warmly embraced in D.C. notwithstanding the fact that he spent a long time on Wall Street gives hope to a lot of people that ultimately talented people can come back and serve their country."

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BX $38.89 1.20%
CS $26.92 -0.11%
GS $188.09 -1.50%
JPM $60.62 -0.56%
MS $35.73 -1.60%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs