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Merrill Lynch has scooped up nearly 30 public finance bankers from the ranks of the now-shuttered municipal group at UBS Securities-taking advantage of a "once-in-a-decade opportunity" as its Wall Street neighbors shed staff to cope with subprime market-related losses, the firm's municipal chairman said.
Other Wall Street and regional firms have stepped in to make strategic hires in certain markets and sectors from among the ranks of professionals fired by UBS and other firms, but none as aggressive or significant in size as Merrill.
The hirers will boost the firm's existing banking staff of about 120 by 20%, according to John Lawlor, chairman of Merrill's municipal markets business for the last decade. The additions will augment the firm's physical presence on both coasts and Chicago while establishing a new one in Philadelphia. The bankers range from senior professionals to vice presidents and associates with a focus on the transportation, housing, healthcare, higher education, infrastructure and the general government sectors.
The most senior individuals that are joining the firm as managing directors include prominent Los Angeles-based banker Frank Lauterbur and his colleague there Jeffrey Bower, both of whom will work on the firm's infrastructure team. James Calpin joins in New York and Nancy Clawson in Chicago, both working on the transportation infrastructure team.
Working from a new Philadelphia office is veteran Ralph Saggiomo, who joins the infrastructure team, and Carol Rein, who will work on transportation infrastructure. H. Jay Bellwoar joins the higher education group in the new Philadelphia office. Much of Lauterbur's group joins him as does the public-private partnership team that included Rein, Calpin and Clawson.
"The municipal market place and municipal clients are a very important strategic client group for Merrill Lynch," Lawlor said.
Merrill's move may send a resounding message of commitment to a municipal market shaken over the last 10 months by the collapse of the auction-rate market, the shattering of the triple-A insurance industry, widespread layoffs, and the absence of two pillars following UBS' closure of its municipal department and JPMorgan's acquisition of Bear Stearns.
But it also raises some questions. Some current Merrill bankers are worried over the security of their positions as the firm blends the new and existing staffs. Some longtime veterans not yet promoted to...