Thursday's Headlines: JPMorgan Completes U.S. IB Executive Shake-Up
JPMorgan promoted Jeff Urwin and Kevin Willsey to co-heads of North America investment banking, succeeding Doug Braunstein who was named CFO in June. The move completes the recasting of the investment bank division's executive ranks that began with the dismissal of Bill Winters as global securities co-head at the end of 2009.
Second-quarter profit from JPMorgan's investment-banking division dropped 6.1 percent compared with the first quarter, while revenue decreased 13 percent. On a conference call, Chief Executive James Dimon cited revived competition from other investment banks, and said JPM will have to fight for market share "inch by inch."
The Accidental CMBS Recovery [Fortune]
The commercial mortgage securities market has thawed thanks in large part to two government programs known as TALF and PPIP. CMBS are trading again, salvaging some sales and trading jobs that were decimated by the crisis. Real estate investors are now showing interest in "special servicers," an obscure niche comprising 18 firms that administer the modification of troubled commercial property loans.
The Toronto-based fund firm with $5 billion under management has opportunities to grow in mutual funds and wholesaling, alternative assets and offshore hedge products, says newly named Chief Executive Peter Grosskopf. He'll take over in September from founder Eric Sprott.
U.S. and European governments are selling an estimated $4 trillion in new bonds this year, and sovereign debt sales will remain elevated for years to come. While economists and policy makers fret, sales and trading professionals in government bond markets will clean up. Good thing the U.S. regulatory overhaul allows banks to continue proprietary trading of Treasury securities and instruments used for hedging them.
The reform bill about to be signed into law will accelerate two long-running trends for banking careers: even among U.S.-based institutions, new jobs and advancement opportunities will increasingly concentrate in markets beyond North America, and in providing credit and investment management for private clients (a.k.a. the very rich).
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