LONDON Nov 5 JP Morgan has poached
David Clarkson from rival Credit Suisse to head its
prime brokerage business in Europe, the Middle East and Africa.
Clarkson's appointment comes after Teresa Heitsenrether, who
launched JP Morgan's European prime brokerage business in 2011,
left London to move to New York as global head this year.
JP Morgan is one of several banks trying to expand into
prime broking - providing hedge funds with services such as
financing, stock lending and clearing of trades.
The financial crisis has encouraged many funds to widen
their prime brokerage relationships across multiple banks in an
industry previously dominated by Goldman Sachs and Morgan
JP Morgan became a big player in the sector in the U.S. when
it acquired failed bank Bear Stearns in 2008.
Global hedge fund assets under management slumped as the
financial crisis took hold but have since recovered and are now
back above $2 trillion. As a result, prime broking has not come
under the same pressures as other investment banking areas in
the past few years.
However, increased capital requirements, new regulations and
reduced demand from hedge fund clients wanting to juice up bets
with borrowed cash - a big earner for banks - is still holding
Clarkson, who will report to Heitsenrether, was most
recently chief of staff in prime services at Credit Suisse, JP
Morgan said in a statement announcing his appointment.
He has also worked at Deutsche Bank as European
head of equity swaps and started his career as a chartered
accountant with Arthur Andersen.
JP Morgan ranks behind Goldman Sachs and Credit Suisse as
the biggest supplier of prime brokerage services, according to
the inaugural global survey by data group Hedge Fund
Intelligence. Morgan Stanley lies fourth.