JPMorgan Bounces Back, Recruits $1.6 Bln Morgan Stanley Team in New York City
J.P. Morgan Securities has lured its second team of big producers in a month from Morgan Stanley’s East 52nd Street complex in midtown Manhattan, belying a long-term trend of erosion at the former Bear Stearns brokerage franchise that J.P. Morgan inherited.
Robert S. Gilman and eight brokers and sales associates who joined the J.P. Morgan unit on Wednesday morning were managing about $1.6 billion of retail client assets at Morgan Stanley, a J.P. Morgan spokeswoman said. The team generates over $5 million in annual production, according to a source familiar with his practice.
Gilman, who joined Morgan Stanley in 2007 following seven years at UBS Financial Services, said he was not authorized by the bank to comment on his move but suggested that his production was considerably higher. His former at Morgan Stanley, where he was a managing director, said he advised “some of the firm’s most valuable clients” in Manhattan and East Hampton.
Two weeks ago, J.P. Morgan Securities hired Scott Seltzer and two client associates from the same Morgan Stanley complex where Gilman had worked. (They were based one floor apart at an East 52nd Street location). Seltzer, an executive director who also had worked at UBS prior to joining Morgan Stanley in June 2010, was managing $350 million in client assets, the J.P. Morgan spokeswoman said.
For J.P. Morgan, the moves follow a string of departures of brokers since it purchased Bear Stearns during the financial crisis. Many who left this year moved to Morgan Stanley and other large broker-dealer competitors.
The new recruits may indicate success with the bank’s decision to dangle all-in signing bonuses that can reach 300% of trailing 12-month production to top-tier producers at a time when wirehouse competitors have retrenched, said a recruiter who declined to be identified because he works with J.P. Morgan Securities.
Joining Gilman at J.P. Morgan are advisors Robert Kushel, Jed. A Morton and David Stanford, along with five sales associates. They report to Mike Lee, a former Smith Barney manager who is J.P. Morgan Securities regional director in metropolitan New York.
J.P. Morgan Securities in March reorganized its wealth management business, shifting the responsibilities of some executives following a series of client-segmentation changes at the broker and its sister private bank.
—Jed Horowitz contributed to this story.