It was a week for promotions and internal reshuffles at investment banks, including Goldman Sachs, Deutsche Bank and Lehman Brothers. But investment management firms continued hiring.
Suzanne Nora Johnson was made vice chairman of Goldman Sachs, making her one of the most powerful women on Wall Street. Johnson retains her positions as head of Goldman Sachs' global investment research division and chair of the firm's global markets institute.
Hank Paulson, chairman and chief executive of Goldman Sachs, said she would help coordinate cross-divisional efforts and play a role in major policy and strategic decisions. Johnson is a former head of Goldman Sachs' global healthcare business and was made a partner at Goldman in 1992. Before joining the bank in 1985, she was an attorney with law firm Simpson Thacher & Bartlett.
Deutsche Bank appointed nine senior managers to run research teams and strategy around the world just a week after axing three heads of European equity research. Among U.S. appointments are David Manlowe, who will be head of company research in the U.S. Tim Andrew, U.S. head of equity research, left this week. Deutsche Bank declined to comment on whether it would cut more research staff.
Lehman Brothers reshuffled its senior management with the appointment of Christopher O'Meara, global controller of the bank, as chief financial officer. He succeeds Dave Goldfarb, who has been promoted to chief administrative officer, reporting to Joseph Gregory, president and chief operating officer.
O'Meara will oversee treasury and tax, financial control, expense management and the firm's international finance organisation. Goldfarb will continue to be responsible for finance, risk management and investor relations.
Regional investment banks
There was some hiring among regional investment banks. Harris Nesbitt, the U.S. investment banking arm of BMO Financial Group, announced the appointment of Jeff Hamilton as managing director, energy and power group. Hamilton worked previously at Credit Suisse First Boston, Salomon Smith Barney and Morgan Stanley. Harris Nesbitt is based in Houston Texas.
On the West Coast, Silicon Valley Bancshares appointed David Ketsdever as
chief executive officer of its investment banking subsidiary, SVB Alliant. Ketsdever joins from Green Ridge Systems, the software company he founded after spending most of his career as an investment banker.
New head at Moody's subsidiary
Credit rating agency Moody's Corporation announced that Andrew Huddart will succeed Douglas M. Woodham as president of Moody's KMV, the leading provider of market-based quantitative credit risk analytics for banks, institutional investors, and corporations. Huddart was made chief operating officer of Moody's KMV in July 2004. Before joining the firm in May 2004, he was chief executive officer of mPower, a San Francisco-based investment advisory firm.
Investment managers continue hiring...
Merrill Lynch announced the appointment of Michael O'Keeffe as head of investment management and guidance in its global private client group, a newly created position. O'Keeffe joins after an 18-year career at California-based Wilshire Associates, one of the industry's leading investment consulting firms.
The Bank of New York hired Anthony Conroy from Merrill Lynch Investment Managers (MLIM) as managing director and head trader for its brokerage business. Conroy joins in New York and will oversee sales trading for institutional trading services, which offers traditional, broker-assisted and direct market access trading through the bank's electronic DExSM platform. MLIM is seeking to grow its agency brokerage business.
Fortis Investments, the asset management arm of Fortis created an asset-backed securities (ABS) team as part of its US fixed income and structured credit capability, with the addition of six senior investment professionals: Karim Berichi joins as ABS portfolio manager from Banca Intesa in New York; Terry Campbell joins as ABS Credit Head from ACE Guaranty Corp; Frank Deutschmann joins as systems engineer from Trepp; Patrick Fontana joins as a residential mortgage-backed security (RMBS) analyst from E*Trade; Vladimir Kostour joins as collateralised debt obligation quantitative analyst from Jefferies & Company; John Palphreyman joins as ABS trader from TIAA Investments. Fortis Investments plans to have a total of 25 professionals in the US dedicated to the fixed income and structured finance effort by mid-2005, located in both Boston and New York City. The team in Boston will focus on corporates, and the group in New York will focus on ABS.
Houston-based asset manager AIM Investments announced changes to the management team and investment style of its three Opportunities funds from growth to value. Roger Mortimer (lead manager) and Glen Hilton will join Robert Leslie as portfolio managers for the three funds. Mortimer and Hilton replace Charles Scavone and Brant DeMuth, who will focus on other duties. Leslie has been co-portfolio manager of all three Opportunities funds since 2000. Mortimer and Hilton also manage AIM Global Value Fund.
Chicago-based investment firm Mesirow Financial hired Diane C. Swonk as chief economist and senior managing director. Swonk comes to Mesirow after 19 years with Bank One Corporation and its predecessors. Mesirow Financial has more than $20 billion in assets under management, custody and advisory and over 1,000 employees in 17 offices across the country.
...while top headhunter paints rosy future for investment management
Russell Reynolds Associates says the market for investment talent is the most competitive in recent memory. Its fifth annual report of recruiting trends in investment management says demand is strongest for senior compliance, risk management and independent board positions . Compensation levels are expected to be up between 15 to 20 percent from a year ago.
The search firm says much of the increased demand is caused by changing dynamics resulting from corporate scandals. Additionally, talented executives continue to be drawn to the freedom of unregulated investment vehicles, such as hedge funds.