Morgan Stanley names tech savvy Rosenthal COO

Morgan Stanley has named Jim Rosenthal, the bank's head of technology, as chief operating officer, according to an internal memo obtained by Reuters. A company spokeswoman confirmed the memo's accuracy.

Rosenthal, 57, has been responsible for merging Morgan Stanley and Citigroup's Smith Barney brokerage force's technology and systems under the joint venture created by the two banks in 2009.

One investor said the choice made sense, given Rosenthal's oversight of a venture critical to the company's future.

The combined Morgan Stanley Smith Barney brokerage force is the nation's largest, with more than 18,000 advisers.

"He was the most qualified with what he was doing, and he's had prior experience that fits for a role like this," said Michael Nix, co-principal at Greenwood Capital Associates. The South Carolina-based fund owns 150,000 shares of Morgan Stanley.

Rosenthal joined Morgan Stanley in 2008 from commercial real estate firm Tishman Speyer, where he had been chief financial officer since 2006.

Before joining Tishman Speyer, Rosenthal worked at Lehman Brothers from 1999 to 2005.

While there, Rosenthal was head of corporate strategy and a member of the investment bank's managing committee.

Rosenthal succeeds Thomas Nides, who held the COO post for less than a year. Nides left Morgan Stanley late last year to join the U.S. State Department as deputy secretary for management and resources.

In his new role, Rosenthal will continue to oversee the integration of Morgan Stanley Smith Barney, in which the company holds a 51% stake.

According to the memo, Rosenthal will also oversee human resources, corporate communications, marketing, community affairs and corporate services.

Rosenthal has an undergraduate degree from Yale University, and a law degree from Harvard University.

He currently is on the bank's management committee.

Morgan Stanley shares closed up nearly 1% at $28.47 on the New York Stock Exchange on Tuesday.