Ruth Porat, chief financial officer at Morgan Stanley (MS:US), has informed the White House that she is no longer interested in serving as deputy Treasury secretary, according to two people familiar with the matter.
As one of the highest-ranking women on Wall Street, Porat’s decision was influenced by the improving conditions at Morgan Stanley and the acrimonious confirmation process of Treasury Secretary Jack Lew, said the people, who requested anonymity to discuss personnel matters.
Lew was confirmed for his post 71-26 after facing questions about his compensation from New York University and a bonus payment he received while working at Citigroup Inc. (C:US) at the time the bank was receiving federal bailout funds.
Porat was awarded $8.75 million in compensation for 2011, and $11.5 million for 2010, according to company filings.
The White House declined to comment.
Porat’s decision will force the Obama administration to restart its search, giving other potential candidates, including those with financial services backgrounds, an opportunity to join the Treasury Department. In December, before Porat became the leading candidate, Blair Effron, a partner and co-founder of Centerview Partners LLP, and Ralph Schlosstein, chief executive officer at Evercore Partners Inc. (EVR:US), had been considered for the post, said one of the people.
Effron has expressed interest in joining the Obama administration, according to one of the persons. Effron and Schlosstein didn’t respond to a request for comment.
Mary Miller, the Treasury undersecretary for domestic affairs, and Lael Brainard, the undersecretary for international affairs, may also be considered, the person said.
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