CMBS Rock Star to Make Comeback with Own Fund
Andy Stone, CSFB’s former CMBS king, is planning to make a comeback. After pocketing $100 million between 1997 and 1999 (through a comp deal that let his group keep 30% of its profits), Stone took off just before the Russian debt crisis, leaving CSFB holding the bag. Since then he’s been sailing his yacht and coaching his son’s little league team. Now, with the help of former colleagues, he’s looking to launch a $500 million to $750 million hedge fund called Petra, a target which should be easily achievable according to industry players.
Former Deal Maker Looks to Get Back In [Wall Street Journal]
Bonus Tracker: Early Indications Show Big Rise
The early reports are in and it’s looking like Santa’s going to be very, very good to Wall Street this year. According to MarketWatch, bonuses in general at Wall Street banks are projected to be up on average between 10% and 20% over last year. Goldman Sachs alone has set up a bonus pool of $9.2 billion for its staff in 2005, according to a Dow Jones Newswires story last month. On average, this works out to--now get this--$420,000 for each of Goldman’s 22,000 workers worldwide. On top of that, New York officials think bonuses just for bankers working in that city could approach $20 billion this year. We’d love to hear from any little birdies about how the bonus pool is looking in your firm or group.
Wall Street Bonus Party Coming Soon [MarketWatch]
Mr. Rogers in Refco’s Neighborhood of Grim Reality
The lead Skadden Arps lawyer for Refco in its ongoing bankruptcy case is a man colleagues describe as more Mr. Rogers than courtroom bulldog, perhaps in part for his penchant for sporting cardigan sweaters. J. Gregory Milmoe started his career in the Skadden mail room back in 1971 and later earned a reputation in the clerk’s office for his habit of wearing a trenchcoat and toting handcuffs when he’d go to serve papers. A key player in the LTCM restructuring, Milmoe is now overseeing 25 lawyers on the Refco case and pulling down, we’d guess, well in excess of the average Skadden partner’s apy of $1.7 million.
Refco Lawyer Knows Bankruptcy [Wall Street Journal]
Comings and Goings: Private Wealth Management
Two left coast private bankers have jumped ship from UBS to Deutsche Bank, the German financial services giant announced yesterday. Clinton Hodges, a former IRS estate tax lawyer, and Kyle Dunphy, also a legal eagle, have joined Deutsche’s Los Angeles office, a key market for DB’s wealth management business these days. They will work under the loving gaze of Paul Miller, Managing Director and Los Angeles Office Director. [Business Wire]
Bear Stearns bulked up its PCS division recently by adding four to alternative investment specialists to their regional offices. The of the four--Bill Fry from Legg Mason, David Mizrahi from Wachovia, and Bob Venzor from Merrill Lynch--are coming on as Managing Directors. [HedgeWorld]
James Brinkley, the current Vice Chairman of Legg Mason , will assume the same role within Smith Barney‘s Global Private Client Group when the firms’ $3.7 billion merger of the investment management firm is closed. The 43-year (!) veteran of Legg Mason will report to Charlie Johnston, President and CEO of Smith Barney’s Global Private Client Group. He was recently honored as the Alexis de Tocqueville Society philanthropist of the year, and chairs the board of directors of Business Volunteers Unlimited in Maryland. [Baltimore Biz Journal]
Who’s Next in Line at Merrill after Stan?
In its Sunday profile of 47-year-old Merrill vice chairman Bob McCann, the Times also takes a look at the jockeying for succession when Stan the Man decides to pack it in:
If he succeeds, Mr. McCann, 47, will improve his chances of climbing that final rung to the top of Merrill. While Mr. O’Neal, who is 54, has not indicated any intention to leave, on Wall Street it is never too early to gauge the political landscape. Other potential successors include Do Woo Kim and Gregory J. Fleming, who run the firm’s powerful investment banking and trading operations, or possibly Ahmass L. Fakahany, the chief administrative officer. Traditionally, Merrill’s president has been the heir apparent. Mr. O’Neal has chosen to hold that job himself - and may continue to do so, creating a quiet horse race.
Shrinking the Culture Gap at Merrill [NY Times]
