JPMorgan's expansion in natural resources banking is spurring hires of energy and mining bankers in Canada, with more to come.
David Harrison, newly hired from UBS where he headed energy investment banking, will lead the buildout of an energy banking franchise for JPMorgan in Calgary. He reports to Adam Howard, head of Canadian investment banking, and Vean Gregg, head of North American oil and gas investment banking.
Several more hires in Calgary are expected. The Globe and Mail reports:
The decision to ramp up the investment banking group in Alberta came after J.P. Morgan built a substantial commodity trading desk in Calgary by acquiring talent from global rivals that are scaling back their operations.
Last year saw the largest U.S. bank bolt on a UBS commodity trading team, and this year the welcome mat went out for a commodity trading team from a division of Royal Bank of Scotland.
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In the metals and mining area, JPMorgan recently hired Geoff Cohen from Thomas Weisel Partners' Canada arm as an executive director based in Toronto.
The bank now employs 22 energy bankers in Houston and another 15 in New York.
Calgary might appear "over-banked" since four other global institutions (Morgan Stanley, Goldman Sachs, Macquarie and Societe Generale) moved in during the last five years. However, ongoing development of Alberta's oil sands create a need for capital that the biggest players can provide, says the Globe and Mail's Andrew Willis.
One recent example: In the largest initial public offering in North America so far this year, shares of Calgary-based Athabasca Oil Sands began trading last week after the company raised C$1.35 billion ($1.33 billion at the March 31 exchange rate). Lead bankers for that deal were Morgan Stanley and Toronto-based GMP Securities.