J.P. Morgan Chase & Co. is shuffling the ranks of its prime
brokerage business, moving its global head, Teresa Heitsenrether,
into a new role as head of the bank's custody and fund services
business.
The bank named as her successor Jason Sippel, who headed
equities trading for the Americas for J.P. Morgan since 2012 and
previously ran equity derivatives trading for the Americas,
according to an internal memo distributed Friday. Under Mr. Sippel,
revenue for the Americas equities business grew more than 12% a
year.
The reshuffle comes amid a sea change across Wall Street in the
prime brokerage business, which is where banks execute and finance
the trades of clients, including hedge funds. That business has
come under pressure amid tougher capital requirements for banks,
and in response banks have taken a number of steps, including
culling clients they deem too unprofitable to support.
"Teresa has helped establish J.P. Morgan as an industry leader,
overseeing significant growth while adapting to regulatory change,"
James Kenny, J.P. Morgan's head of investor services, wrote in the
memo. The custody and fund-services business, which houses client
assets and provides back-office support, "continues to be a core
strategic priority" for the bank, he wrote.
J.P. Morgan is one of the nation's largest custodian banks. The
personnel changes were earlier reported by Bloomberg News.
Ms. Heitsenrether has headed J.P. Morgan's prime brokerage
business since 2012. Previously, she had built up the bank's prime
brokerage business abroad.
Nick Rudenstine, the previous global head of custody and fund
services, will be taking another role at the bank, according to a
person familiar with the matter.
The prime brokerage business at other banks has also seen change
recently in executive ranks. Several executives in Barclays PLC's
prime brokerage are leaving to join other firms, The Wall Street
Journal reported previously. That included Mark Bailey, the global
head of treasury for Barclays's equity-financing business, who is
expected to start at trading-firm giant Two Sigma Investments LLC
in August. Credit Suisse lost its global head of prime services,
Paul Germain, earlier this year to Stone Ridge Asset Management,
and named Mike Paliotta, the co-head of equities for the Americas,
as his replacement.
Write to Juliet Chung at juliet.chung@wsj.com
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