Saturday, April 20, 2024
HomeWealth ManagementJPMorgan Loses Former First Republic Groups to Residents, Merrill Lynch

JPMorgan Loses Former First Republic Groups to Residents, Merrill Lynch

J.P. Morgan is dropping two multi-billion groups acquired within the agency’s buy of First Republic following final 12 months’s regional financial institution disaster.

Merrill Lynch is recruiting a 12-person Florida group from JP Morgan Wealth Administration that manages $3.5 billion in shopper belongings, whereas Residents Financial institution introduced it was buying a equally sized group with greater than $5 billion AUM primarily based out of San Francisco, additionally from JP Morgan. 

The San Francisco group consists of senior managing administrators Rick Gordon and Hugh Beecher, in addition to managing director Andrew Curto. Beecher and Gordon joined First Republic in 2015. Beecher had a multi-decade tenure within the business, together with stints at Goldman Sachs and Credit score Suisse, whereas Gordon labored at Barclays and briefly at Lehman Brothers, in keeping with their BrokerCheck profiles.

Final 12 months, the collapse of Silicon Valley Financial institution started toppling dominoes all through the banking business, together with First Republic. The latter financial institution was the second-largest financial institution failure in U.S. historical past and the fourth regional financial institution to break down since SVB’s downfall in March. 

Regulators briefly seized the flatlining First Republic earlier than JP Morgan stepped in, buying about $173 billion of First Republic’s loans, $30 billion of securities and $92 billion in deposits. 

It was a full-circle transfer for a lot of advisors who’d begun their careers in huge brokerages earlier than arriving at First Republic solely to seek out themselves again within the partitions of a wirehouse (a 2023 evaluation discovered 69% of First Republic advisors joined from a wirehouse or giant agency, together with Ameriprise, Goldman Sachs, JPMorgan, Raymond James and Credit score Suisse, amongst others).

The acquisition additionally follows information this week that business veteran Paul Casey would be part of Residents from Morgan Stanley to turn out to be the Head of Wealth Administration starting in July.

In the meantime, Merrill Lynch acquired the Florida group led by Salvatore Tiano and John Smyth, that additionally included 4 wealth managers and 6 shopper associates. They’re becoming a member of Merrill’s Palm Seashore Gardens workplace, led by Regional Managing Director Josh Moody.  

A 16-hour drive up I-95, in Lewes, Del., a group of 4 left Merrill Lynch for Janney Montgomery Scott, a hybrid RIA and dealer/supplier overseeing round $138 billion in shopper belongings on the finish of 2023. 

Working as Shore to Shore Non-public Wealth, the quartet is helmed by Govt Vice President Michael Koppenhaver, manages $600 million in belongings and reported a trailing twelve-month revenue of greater than $3.7 million whereas at Merrill. 

Throughout a quarterly earnings name final week, Financial institution of America stated advisor attrition dropped at Merrill however didn’t supply a headcount. The corporate reported using 18,916 advisors on the finish of 2023, following a web achieve of about 175.  

On the finish of the primary quarter, Merrill Lynch advisors have been overseeing roughly $3.3 trillion in shopper belongings, together with about $1.4 trillion beneath administration. That’s a rise of $300 billion and $100 billion, respectively, over the identical interval a 12 months in the past.  



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments