Top Morgan Stanley broker departs for J.P. Morgan

NEW YORK, Mon Oct 1, 2012 – A top Morgan Stanley broker who last year managed about $2 billion in client assets left the company’s brokerage division on Friday to join J.P. Morgan Securities.

Adviser Jonathan Madrigano, who worked out of Morgan Stanley Wealth Management’s Midtown Manhattan office, generated annual revenue of between $8 million and $10 million, according to sources with knowledge of the move.

“That level of production is eye-opening,” because only a handful of broker teams with more than $1 billion in assets under management leave any big brokerage each year, said New York-based financial services recruiter Danny Sarch, who has worked in the industry for nearly three decades. “There aren’t that many guys out there of that size at any firm across the country.”

Madrigano managed more than $2 billion in client assets, according to a 2011 Barron’s ranking of top financial advisers in New York.

He was a director of wealth management and a private wealth adviser at Morgan Stanley Private Wealth Management, the company’s ultra-high-net-worth group catering to clients with at least $20 million in assets.

Madrigano was a legacy Citigroup Smith Barney broker. He started at New York-based investment bank D.H. Blair & Co in 1989 and moved to Citigroup Inc. in 2000, according to regulatory filings.

JPMorgan “whale” loss cuts bank trading revenue

NEW YORK, Fri Sep 21, 2012 – JPMorgan Chase & Co.’s multibillion-dollar loss on a bloated derivatives portfolio led the way to a 73 percent decline in U.S. banking industry trading revenue, according to a new government report.

Trading revenue fell to $2 billion in the second quarter from $7.4 billion a year earlier, the Office of the Comptroller of the Currency said on Friday.

“It was clearly the highly publicized losses at JPMorgan Chase that caused the sharp drop in trading revenues,” Martin Pfinsgraff, deputy comptroller for credit and market risk, said in a statement from the OCC. Less demand from clients for trades was also a factor, he said.

Compared with the first quarter, trading revenue fell almost as much, by 69 percent, from $6.4 billion.

So far, JPMorgan has pegged its total loss on the trades at $5.8 billion, using public-company accounting standards and assigning part of the loss to the first quarter.

A London-based trader involved in the trades was known in the credit derivatives market as the “London whale” for the large size of the positions he took.

The OCC’s tally of industry results put JPMorgan’s second-quarter loss on the trades at $3.7 billion, which the regulator said had caused the bank to report an aggregate $420 million trading loss for the quarter. Accounting for bank regulations is different in some ways from that used in companies’ reports to shareholders.

The OCC report echoes similar data reported on Aug. 28 by the Federal Deposit Insurance Corp.

Another risk officer in JPMorgan ‘Whale’ trade retains lawyer

NEW YORK, Tue Aug 21, 2012 – Another JPMorgan Chase & Co. risk manager, who worked for a division that lost at least $5.8 billion on a series of complex derivatives trades, has hired a lawyer in connection with probes into the so-called “London Whale” trading debacle, according to sources familiar with the investigations.

Federal authorities are investigating an allegation that some of the bank’s traders in London may have tried to hide hefty losses, and JPMorgan is conducting an internal probe.

Peter Weiland, who was head of risk at JPMorgan’s CIO from late 2008 until the beginning of 2012, is one of at least six people associated with the case who have hired attorneys. He has been reassigned by the bank to a new risk control team at the overhauled Chief Investment Office where the loss occurred.

Weiland, who is based in New York, did not return requests for comment, and his lawyer declined to comment.

Of the six people who have hired attorneys, all but Weiland have either been fired by the bank or left on their own accord.

It is not clear how much interest federal authorities have in Weiland over an incident that has proved to be a major embarrassment for JPMorgan CEO Jamie Dimon. There is no indication that authorities believe Weiland has done anything wrong.

It is not unusual for traders to retain counsel in such high-profile probes, in part to shield themselves when critical discussions occur about possible criminal or civil wrongdoing.

J.P. Morgan hires Barclays director for Latin American debt

NEW YORK ― In an effort to bolster its Latin American debt capital markets team, J.P. Morgan has hired Carlos Aspillaga away from Barclays Capital to act as its executive director, heading government debt and Colombian, Central American and Caribbean corporate debt offerings, Bloomberg reports.

At the end of the third quarter, J.P. Morgan ranked second only to HSBC, in Latin America corporate bond issuance. However, as of this morning, the bank ranked sixth in the market, leading only $250 million in the fourth quarter as competitors gained market share, according to data compiled by Bloomberg.

For the year, more than $121 billion in Latin America debt has been offered by 75 banks — generating $380 million in revenue for investment banking divisions. Total offerings are up 4% in the region from last year, while fees as a percentage of sales have also increased by half a basis point.

J.P. Morgan is aggressively trying to defend its leadership position in global investment banking, especially after posting disappointing earnings in the third quarter. For the period, fees from debt underwriting fell 37 percent to $496 million.

Aspillaga had worked at Barclays for more than 17 years, most recently as a director heading the company’s Latin American debt division. He will now report to Roberto D’Avola, head of Latin America debt.