Bear Stearns’ UK wealth managers in demand
JP Morgan unlikely to offer the deal they were on at Bear Stearns
After its takeover of Bear Stearns, JP Morgan is likely to have to pay large amounts to keep senior private client brokers at its rival's wealth management business in the UK, said headhunters.
One source familiar with Bear Stearns said several private client brokers have already quit.
He said: "They got a great deal out of Bear - 40% of the commissions they brought in. They know JP will not offer them that, although its products are good."
Bear Stearns' senior private client brokers in London include Mazy Moghadam, who used to work at Goldman Sachs, Cigdem Erkman, formerly at Morgan Stanley, and Haitham Karaket. A rival wealth adviser said: "These people will be in demand."
Bear Stearns' identity in wealth and asset management is likely to be eroded following the bank's takeover by JP Morgan.
Bear's wealth and asset fourth-quarter net revenues of $272m (€176m) were marginally over one tenth of JP Morgan's. Bear's assets under management are $44.6bn, against $1.2 trillion. One source close to JP Morgan said it did not expect to be blown away by Bear: "On first sight, Bear wouldn't add too much to our expertise."
Jes Staley, chief executive of JP Morgan's buyside business, will work hard to keep talented individuals. He operates a silo system which could slot talented teams alongside his existing businesses. But one headhunter said redundancies were inevitable: "Managers will know where there are duplications. We're all flocking round to see what comes up."
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