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Who Will Replace Tim Geithner?

247wallst — Wed, 22 Sep 2010 09:46:13 +0000

Larry Summers is gone now. His two years of duty as the head of the National Economic Council are over. He will return to Harvard, where he was once kicked out as President, to become a professor. He will certainly make millions of dollars a year as a consultant to foreign governments, corporations, and financial institutions. Summers is 56-years-old and looks older. Now is the time to save for his retirement.

The speculation is that the Administration will replace Summers with a person more sympathetic to large business, a group that President Obama has alienated. Perhaps he will pick Jeff Immelt, the head of GE (NYSE: GE), or Ivan Seidenberg, the head of Verizon (NYSE: VZ), which just appointed the man likely to be his successor.

The next man to leave the financial arm of the executive branch will be Treasury Secretary Tim Geithner.

There has been speculation for months that he would be asked to leave. The Administration’s unsuccessful attempts to improve unemployment, housing, and economic growth can be blamed on him, although he has been as powerless as anyone else to improve the American economy. But someone needs to be blamed, particularly in the world of politics in which a sitting President will see his party likely lose control over the House of Representatives and perhaps the Senate. Geithner would be a sacrifice to improve relationships with his opponents, particularly if Obama placed a Republican in the job.

A large number of Treasury Secretaries or other senior presidential advisers have come from Goldman Sachs Group (NYSE: GS). But, its current CEO Lloyd Blankfein is associated with Wall Street’s high compensation problems and shifty business practices. The hero of the banking industry, at least for now, is Jamie Dimon, the head of JPMorgan Chase (NYSE: JPM), who is credited with effectively leading his firm through the financial crisis. And then there is John Mack who has stepped down as CEO of Morgan Stanley (NYSE: MS). Mack has held almost every senior job in the investment banking industry and does not have as much to do with his time as when he was a chief executive.

The perception among people who care about whom the Treasury Secretary is has become that anyone is better than Geithner. His failures are as much the fault of the times as they are any decisions he has made. But, he will be gone and gone soon. The only mystery about the matter is who will replace him.

Douglas A. McIntyre

Filed under: Politics Tagged: GE, GS, JMP, VZ

Frank Quattrone Launches Qatalyst (CS, GS, GOOG, JMP)

247wallst — Tue, 18 Mar 2008 10:16:47 +0000

If you have been around the markets for a decade you’ll know the name Frank Quattrone quite well. Quattrone was one of the most influential investment bankers in the 1990′s who also became the head of Credits Suisse’s technology banking group. He was nearly destroyed in one of the great Wall Street scandals in obstructing the investigation over brokerage firms giving shares in hot IPO’s to great clients for higher commissions, in which he was ultimately vindicated.

Frank Quattrone has just announced that he is launching Qatalyst Group, a new technology boutique being launched with former colleagues. Qatalyst will be a technology-focused merchant banking boutique that is to be headquartered in San Francisco, CA. This is being noted as Qatalyst Capital and Qatalyst Partners.

Qatalyst Partners is its investment banking business, and it will provide high-end M&A and corporate finance advice to technology companies. Qatalyst Capital Partners is its investing business and it will make selective principal investments, typically alongside leading venture capital and private equity firms. Qatalyst Partners noted that it will provide "high quality, independent advice to the senior management teams and boards of the technology industry’s established and emerging leaders on strategic matters crucial to their growth and success." While it will not engage in public securities research, sales, trading or brokerage, Qatalyst Partners may participate as advisor or underwriter in clients’ public offerings.

This will combine a broad network of relationships with deep sector knowledge and seasoned M&A expertise. In addition to merger & acquisition advice, Qatalyst Partners will also advise companies on capital structure and capital raising alternatives, and will selectively raise private capital for clients.

Eric Schmidt of Google (NASDAQ: GOOG) noted, "….I look forward to working with him again and am very enthusiastic about Qatalyst’s prospects for success."

It looks like this cadre is mostly from Goldman Sachs (NYSE: GS) and Credit Suisse Group (NYSE: CS). Qatalyst’s initial founders include:

Jonathan Turner, a technology M&A expert, formerly Global Head of Credit Suisse’s Internet group and most recently served as Vice President of Corporate Development for online marketing leader QuinStreet;
Adrian E. Dollard, formerly General Counsel of Credit Suisse’s Technology group and a lawyer at Shearman & Sterling specializing in M&A, corporate finance and venture capital;
Neil Chalasani, most recently a Vice President with Evercore’s Technology, Media & Telecom group;
and will include Brian Slingerland, most recently a Vice President with Goldman, Sachs’ Technology Media & Telecom group;
and Brian Cayne, most recently an Associate at Vista Equity Partners.

Qatalyst Partners has submitted an application for registration as a broker-dealer with the SEC and has applied for membership in FINRA. During the approval pending process, Qatalyst will operate as a division of JMP Securities so that they can begin to advise clients immediately. JMP Securities is part of JMP Group (NYSE: JMP).

It looks like Wall Street just got a new technology boutique that will be involved in venture capital, private equity, and bringing companies public.

Jon C. Ogg
March 18, 2008

Cramer says Buy JMP, Sell Refiners

247wallst — Fri, 11 May 2007 13:45:51 +0000

Jim Cramer talked about refiners and an IPO on today’s STOP TRADING segment on CNBC. He says he is shifting from a Buy to a Sell on the refiners because margins may have peaked. He does not think margins will collapse at all, but it’s time to take some off the table. Valero (VLO) at $74 is one he’s had enough with. Chevron (CVX) is one that he’s had enough of. JMP Securities (JMP), the boutique investment banking firm IPO from today, is one that he thinks is a great investment banking niche that you can play. You can buy into it as a great firm.

Jon C. Ogg
May 11, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.