Big Banks Bleed Best and Brightest to Hedge Funds
The major banks continue to battle regulators over the implementation of the Volcker Rule -- part of the Dodd Frank Wall Street Reform and Consumer Protection Act -- and its confusing ban on most proprietary trading, but the writing is on the wall.
On Sunday, the Financial Times reported that Mike Stewart, JPMorgan Chase's (JPM) global head of proprietary trading, was planning to leave the firm to start his own investment fund while taking several JPMorgan employees with him.
The Financial Times also said that Deepak Gulati, who was slated to move into JPMorgan's asset management division, was also considering exiting the company to start his own fund, based on Zurich. The FT cited unnamed sources.
Another new investment fund.
Douglas Ormond -- former JPMorgan Chase executive director and portfolio manager for proprietary trading -- and Michael Schwartz -- former star principal and head of research at Normandy Hill Capital -- plan to launch Otlet Capital Management, during the second quarter, according to people familiar with the situation.
The New York-based special situations and capital structure arbitrage fund is named after Paul Otlet, an early twentieth century researcher considered the "father" of information science, sources said.