Capital markets chief out at Janney: confirmed (Update)
Regional banks face tough Wall St. competition
MONDAY UPDATE: John "Jordie" Maine is out as Executive Vice President - Head of Capital Markets at Janney Montgomery Scott, the largest stock brokerage/investmen bank based in Philadelphia, spokeswoman Karen Shakoske told me this morning, confirming news I reported from industry sources last week.
That leaves Maine's former responsibilities shared among three of his former reports --Will Corkhill, head of equity capital markets; Mark McCulloh, head of equity distribution; Nick Lampone, head of sales trading.
Separately, Janney managing director and retail analyst David Strasser has left to join Swan & Legend Venture Partners, a Washington, D.C.-area investment firm. Neither Maine nor Strasser has been replaced.
Maine's profile at Janney's Web site was taken down Wednesday after I called the company. Calls to Maine's homes in Wyndmoor and Cape May and an email to his Janney office have not been returned.
A successful sales executive at Citigroup and other Wall Street banks, Maine came to Janney (owned by Penn Mutual Life Insurance Co.) in 2008 and was given a mandate to build a stronger regional banking group to focus on the often lucrative business of selling and financing client companies, and taking them public.
Like other regional players, Janney has struggled to win its share of deals in the face of strong national competition. Some regionals, including Raymond James and Legg Mason, have found profitable niche markets.
Janney critics, including former Janney employees, tell me the firm's particular sales focus has not been rewarded by a lot of lucrative investment-banking deals with large national and regional companies. Some have criticized Penn Mutual for squeezing profits from Janney instead of building a longterm investment banking businss; Penn Mutual officials say they have been supportive and invested prudently.
The company's brokerage business, on the other hand, has expanded, thanks at least partly to broker acquisitions during the recent bull market (it delivers roughly 80% of Janney revenues),. The company says it ha delivered healthy profits.