Goldman Sachs has installed as its first regional chairman in Beijing a banker who set up a business with partners including jailed insider trader Raj Rajarathnam and on-trial former Goldmanite Rajat Gupta.
The bank has hired back Mark Schwartz, who started an investment firm in 2006 with bankers including the two men called Taj Capital Partners Asia. But from having big plans to hire 50 staff and invest $2bn in hedge funds and private equity, the project was scaled back by the end of that year. Goldman said Mr Schwartz left before Taj started trading.
Rajarathnam is now serving time for insider trading and Mr Gupta is on trial for leaking tip-offs to him.
The role was only a minor part of Mr Schwartz's business activities since he first quit Goldman in 2001. His main roles since then have been at George Soros's hedge fund group and at investment firm MissionPoint Capital Partners.
He is to return to Goldman to replace J Michael Evans.
Faced by dwindling growth in Western markets, banks have increasingly been looking to shift their focus to the east.
Mr Schwartz, 57, left Goldman 11 years ago after enjoying a rapid rise through the ranks there since joining in 1979.