The Power 25: Leaders in Finance

source: http://www.iimagazine.com/research/Articles/2357022/The-Power-25-Leaders-in-Finance.html?LS=EMS357948 access date: January 2010

To help make sense of the shifting landscape of Wall Street, the editors of Institutional Investor compile a list of the 25 most powerful and influential people in the world of investment and banking today. The list includes bank CEOs, star traders and high-priced rainmakers, and ranges from New York to London to Beijing. Subjective to be sure, the ranking nonetheless highlights some incontestable features about the industry during a time of historic transformation.

1 James Dimon
Chief Executive Officer, JPMorgan Chase & Co.CEO No other banking leader has emerged from the financial crisis with as much authority, or respect, as JPMorgan Chase CEO Jamie Dimon. Under his leadership, JPMorgan has vaulted to near the top of almost every global investment banking ranking. For 2009 its revenue and profits appear headed toward record numbers. Known for inspiring fierce loyalty among his subordinates and having a passion for detail, Dimon must now contend with a changed financial landscape, a swelling array of

competitors (even Goldman Sachs is now a bank) and greater government intrusion into the everyday business of finance. And though only 53, he must ensure his legacy by providing for a strong successor. He has begun by naming Jes Staley (see No. 11), formerly chief of the banks asset management arm, head of Morgans investment bank and by grooming a generation of 40-something leaders, including newly named asset management boss Mary Erdoes and CFO Mike Cavanagh.

2 Lloyd Blankfein
Chief Executive Officer, Goldman Sachs Group It once appeared as if Lloyd Blankfein would be best remembered for his rock-steadiness during the 2008 financial crisis. No, he reassured an anxious colleague, this wasnt like storming the beaches at Normandy. Although the markets didnt turn against Goldman seemed Sachs to, as in 2009, the everyone firm from Washington politicians to ordinary citizens prospered conspicuously while millions suffered in the recession. Excommodities trader Blankfein, 55, who became Goldman CEO in 2006 when Hank Paulson moved to Treasury, didnt help with the backlash any when he quipped to a London newspaper that Goldmans lavishly paid bankers were doing Gods work. Now he may be linked forever to that cringe-inducing quote. Still, Blankfein is a genuinely liked leader. And its a sure bet that in the next financial crisis, the president will install a hotline to Goldmans offices.

3 Josef Ackermann
Chief Executive Officer, Deutsche Bank In 2008, Deutsche Bank suffered its first annual loss since World War II. For CEO Josef Ackermann, 61, it was a wrenching experience. But having led the bank through the worst global financial storm in 70 years, he stands to reap the fruits of recovering markets. Deutsches profits have rebounded strongly, and Ackermann has been able to renew his contract for three more years. A rare breed of player-coach, he combines managing a global investment bank with chatting up clients. Long active in industry associations, he has spoken out on, among other topics, the justification for bankers compensation. Now Ackermann is well positioned to lead Deutsche from trading powerhouse to balanced financial services firm and perhaps ensure his legacy in the process.

4 Robert Diamond Jr.

President, Barclays Capital Never let a crisis go to waste. Its a mantra of the Obama administration, but few have taken it to heart like Bob Diamond, an erstwhile supporter of John McCain. A former bond trader, Diamond, 58, turned Barclays Capital, the banks securities arm, into a global debt powerhouse in a decade, but that was just a prelude to his biggest move:

buying the U.S. subsidiary of the bankrupt Lehman Brothers in September 2008, and gaining a franchise in equities and M&A Now ensconced in Lehmans old Times Square headquarters, Diamond is determined to make Barclays a top-three firm across the board. Given his track record, no one on Wall Street dares dismiss his ambitions.

5 Brady Dougan
Chief Executive Officer, Credit Suisse Unlike his arch-rivals at UBS, Credit Suisse CEO Brady Dougan managed to avoid a government bailout during the financial crisis by raising capital in the Gulf. Nonetheless, the big Zurich bank experienced a rocky 2008. So with markets reviving strongly in 2009, Dougan, 50, prudently dialed down risk and cut back on proprietary trading and structured product activities to concentrate on flow business in bonds and equities and on gaining market share in prime brokerage. Credit Suisse has bounced back impressively and is once again solidly in the top tier of global investment banks. Even the private banking arm raked in money, despite U.S. officials probe into offshore tax evasion by Americans. The big question now: Will Dougan ramp up risk-taking, when conditions permit, and open Credit Suisses hefty checkbook for acquisitions?

6 James Gorman
Chief Executivedesignate, Morgan Stanley James Gorman, CEO-designate of Morgan Stanley, has taken temporary offices on the firms trading floor. Gesture or not, this sends a strong signal that the 50year-old Australian lawyer with a Columbia MBA and a background chiefly in strategic planning (McKinsey partner) and asset management (head of private clients at Merrill Lynch) is committed to trading and other investment banking activities. He affirmed that palpably in late December by naming Paul Taubman (see No. 19) and current CFO Colm Kelleher as co-presidents of institutional securities, Morgans biggest business. Hired in 2006, Gorman oversaw the creation of Morgan Stanley Smith Barney, now the worlds largest brokerage firm, to balance the volatile investment banking business. He succeeds John Mack, who becomes chairman, in January. The onetime consultants mission: to restore Morgan still one of Wall Streets most powerful firms to its former glory after a decade of management turmoil.

7 Thomas Montag
President, Global Banking and Markets Bank of America Merrill Lynch Bank of America Corp.s controversial purchase of Merrill Lynch & Co. may have cost BofA CEO Ken Lewis his job, but Tom Montag, 52, is doing his best to demonstrate the logic of the deal. Montags global markets business booked $6 billion of net income on $17.2 billion of revenue during the first nine months of 2009 virtually all of the banks profits and 18 percent of overall revenue.

Montag, a 22-year veteran of Goldman Sachs Group who had co-headed that firms powerful trading unit, largely succeeded in holding Merrill together during a tumultuous period. Now he needs to prove that his bankers and traders can use BofAs balance sheet to win deals and consistent profits as markets recover.

8 Anshu Jain
Head of Global Markets, Deutsche Bank As one of the engineers of Deutsche Banks transformation into a powerhouse in global investment banking, Anshu Jain, 46, is often touted as a potential successor to CEO Josef Ackermann (see No. 3). Nevertheless, the Indian-born Jain may well be quietly relieved that his boss has delayed his retirement until 2013, since that will give Jain plenty of time to distance his global markets division from its 7.4 billion ($10.9 billion) loss in the 2008 financial crisis. In the first nine months of 2009, revenue nearly tripled in Jains sales and trading operation, to 9.9 billion. Although Jain was named to the banks governing Vorstand in March (along with three other potential Deutsche CEOs), rumors surfaced in June that he might go to Citi, and he wound up affirming his allegiance to Deutsche. A cricket lover, he will need the sports virtues of patience, persistence and fair play to land the top job in a competitive field.

9 Kenichi Watanabe
Chief Executive Officer, Nomura Holdings It was what the Japanese might call daitanfuteki daring. When Lehman Brothers collapsed last year, Nomura CEO Kenichi Watanabe promptly acquired the banks international operations for $225 million and committed to paying an additional 140 billion ($1.5 billion) in bonuses to keep the Lehman bankers on board. At a stroke, Watanabe, 56, boosted Nomuras head count by nearly 50 percent, to more than 25,000. And in December, Nomura said it would spend almost half of the nearly $5 billion the firm had raised in October to boost its U.S. presence in a bid to achieve Watanabes goal of becoming a true global investment bank.

10 Gary Cohn
President and COO, Goldman Sachs Group As the sole president and COO of a team-obsessed firm that likes to see co- in executive titles, Gary Cohn is widely viewed as an heir apparent to the gilded Goldman Sachs throne. The 49-year-old former currency trader has long been at the side of CEO Lloyd Blankfein, going back to their days at J. Aron. In recent years, Cohn has helped Blankfein run the firms trading and principal investing operation, which has powered Goldmans profits. In March, Cohn told a conference audience that the investment banking business was alive and well and that Goldman, for one, had no intention of changing its business model, even if it had become a bank holding company. Declared Cohn: Wall Street is not over.

11 Jes Staley
Chief Executive Officer, Investment Bank, JPMorgan Chase & Co. Jes Staley has emerged as the one most likely to run JPMorgan if CEO Jamie Dimon is, say, hit by a bus or named U.S. Treasury secretary. But before that became clear, Staley, 53, head of asset management, had to run JPMorgans biggest profit center: the investment bank. Happily, thats where hed originally made his career as a founder of the equity business. So in September, Dimon chose Staley to head investment banking. A lifer who joined JPMorgan out of college in 1979, the strong-willed Staley had impressed Dimon by embracing two things that the CEO himself hated hedge funds and closed architecture and making them work..

12 Wang Dongming
Chairman, Citic Securities Co. Wang Dongming studied Japanese investment banks in the 1980s and concluded that they resisted hiring foreign talent and thus never truly internationalized. To help Citic become a global player, chairman Wang, 58, is systematically recruiting foreign bankers to transform the culture of Chinas largest investment bank. Perhaps not surprisingly, Citic is showing strong results in Asian league tables. Wang is also considering listing Citic outside China. Earlier this year he formed a joint venture with U.S. investment bank Evercore Partners.

13 John Havens
Chief Executive Officer, Institutional Clients Group Citigroup His abrasive manner and imposing physique can be intimidating, but if John Havens, 52, comes across as one of Wall Streets hard men, he is also by most accounts an inspiring leader and talented manager just what Citigroups investment banking arm so desperately needs. Along with his boss, CEO Vikram Pandit, Havens joined Citi in 2007 when it bought the hedge fund theyd formed after leaving Morgan Stanley. The one-time convertibles trader is in charge of securities, advisory and alternatives activities that generated $11.6 billion in net income in the first three quarters of 2009, keeping Citi in the black despite big losses on toxic assets and in consumer lending. As Pandit seeks to get the bank back on its feet, no one is more pivotal to the effort than Havens.

14 Alex Wilmot-Sitwell
CoChief Executive Officer, UBS Investment Bank Alex Wilmot-Sitwell, 49, is one UBS banker who has survived the crisis with his reputation not only intact but enhanced. Lately, he has advised Lloyds Bank on its rescue of HBOS (see Rainmakers, page 18); led Anglo-Americans defense against rival Xstrata; and is now helping Cadbury fend off Kraft. The banks new CEO, Oswald Gruebel, is pushing client-led activities like M&A advice to the forefront at the expense of proprietary trading the activity that cost UBS $40 billion in losses. In April, Gruebel recognized Wilmot-Sitwells client relationship and deal-making skills by handing him joint responsibility for UBSs investment bank, along with fixed-income head and ex-Goldmanite Carsten Kengeter.

15 Stuart Gulliver
Chief Executive Officer, Global Banking and Markets HSBC Holdings When decided HSBC to trimmed its investment units focus. banking So he

ambitions a few years ago, Stuart Gulliver, 50, sharpen the emphasized global debt financing and targeted equity and advisory efforts on emerging markets. The formula worked splendidly. In the first half of 2009, even as HSBCs U.S. consumer banking business hemorrhaged, Gullivers global banking and markets unit spared the bank from a loss by posting $6.3 billion in pretax profits. Gullivers reward? Gaining oversight of all of HSBCs activities in Europe and the Middle East when CEO Michael Geoghegan moves to Hong Kong early in 2010. That puts Gulliver in pole position to succeed the CEO one day.

16 David Heller
Co-Head, Global Securities Division Goldman Sachs Group If there is one person other than Gary Cohn (see No. 10) who has a shot at succeeding Lloyd Blankfein as Goldmans CEO, it is David Heller, 42, say insiders. Starting out for Goldman in Asia in equity derivatives, he ran equities in Japan and became a partner in 1996. A decade later the firm made Heller head of global equity trading. And early last year, Heller and Harvey Schwartz were named co-heads of all sales and trading. Goldman today controls a large proportion of equity order flow and boasts Wall Streets largest sales and trading team. Heller has played a prominent part in that success.

17 H. Rodgin Cohen
Chairman, Sullivan & Cromwell Rodgin (Rodge) Cohen, 65, seemed to be everywhere during the darkest days of the banking crisis. He advised JPMorgan on its acquisition of Bear Stearns, counseled Lehman Brothers on its fast-dwindling options and assisted Wachovia Bank in its scramble to find a merger partner. When Lloyd Blankfein was seeking a lifeline for Goldman Sachs, Cohen was in the room. As the dean of Wall Street lawyers, Cohen knows practically everyone in finance. In a 1994 II cover story (the only one the magazine has ever done on an attorney), we described him as someone who will come up with a way to get the most intractable deals done.

18 Li Jiange
Chairman, China International Capital Corp. As foreign financiers wonder when Chinas big banks will go after overseas markets, they are keeping a close eye on Li Jiange. Since taking over as chairman of CICC in 2008, Li has used his banks domestic strength to climb the league tables. The bank ranked first as a corporate bond book runner in Asia ex-Japan from January to mid-November, raising $24.7 billion, according to Dealogic. Li helped pioneer Chinese reforms as a senior aide to former premier Zhu Rongji in the 1990s. His next moves could be equally influential as he prepares state-controlled CICC for an IPO and looks to expand in New York and London.

19 Paul Taubman
Co-Presidentdesignate, Institutional Securities Morgan Stanley Paul Taubman had no sleep on Columbus Day weekend in October 2008, but it wasnt because he was brooding over Lehman Brothers failure a month earlier. Rather, he was trying to avoid a Lehman-like fate for his own bank, Morgan Stanley, by brokering a $9 billion capital infusion from Mitsubishi UFJ. His mission accomplished in the wee hours of Monday morning global investment banking chief Taubman, 48, presented himself a few hours later at Wyeth Corp. in New Jersey to discuss merger options. In the past 18 months, we have seen a meltdown of the financial system as we know it, Taubman notes. Yet he and his team have restored Morgan to the upper ranks of M&A advice, earning Taubman a promotion to co-president of institutional securities, starting January 1.

20 Andr Esteves
Chief Executive Officer, BTG Pactual The most powerful investment banker in Latin America started out as an intern fixing computers. Andr Esteves, 40, Brazils youngest self-made billionaire, began in the IT department of So Paulo investment bank Pactual in 1989 and rapidly rose to the top. When Pactual was sold to UBS in December 2006 for $2.6 billion, Esteves owned close to one third of it. And he collected a $500 -million retention package. UBS, which clearly valued his services, put him in charge of its Latin American businesses and, in July 2007, lured him to London to run its huge global fixedincome, currencies and commodities operation.

Esteves quit in mid-2008 to co-found BTG, and this April his new bank bought Pactual from a beleaguered UBS. Having come full circle, Esteves is CEO of BTG Pactual, which has $33 billion in assets.

21 Antonio Weiss
Head of Investment Banking, Lazard Though shaken by the loss of its legendary CEO, Bruce Wasserstein, Lazard still packs some powerful punchers none more so than Antonio Weiss. The 43-year-old ItalianAmerican dual national received two promotions in 2009: in March to global head of mergers and acquisitions and this fall to global head of investment banking, in the reshuffle that followed Wassersteins death. (Named CEO was Kenneth Jacobs, 51, whos been a Lazard deal maker for two decades and sees his role as that of a player-coach.) In his 16 years at the bank, Weiss has been on the front lines of deal making. For instance, he advised longtime client InBev on its purchase of AnheuserBusch last year and is now counseling InBev on divestitures. But Weiss has a feel for words as well as for numbers: Hes a publisher of literary journal The Paris Review, where he once apprenticed with famous founder George Plimpton.

22 Andrea Orcel
Executive Chairman, Banking and Markets, Bank of America Merrill Lynch Andrea Orcel figures prominently in the plans of Bank of America Merrill Lynchs new investment banking chief, Tom Montag (see No. 7), who hopes that Orcels deal-making prowess can get BofA Merrill back in the game internationally after the bruising merger of the bank and the brokerage firm.

Orcel, 46, has advised such banking giants as Emilio Botn at Banco Santander and Daniel Bouton at Socit Gnrale. He generated $500 million in revenue for Merrill in 2007 (earning a controversial $33 million bonus). Postmerger, Orcels mentor, Greg Fleming, and most of his European lieutenants left Merrill. Montag hastily promoted Orcel and told him to hire fresh rainmakers. Orcel is confident his team can provide more than half of the investment banks revenues, as it did at Merrill.

23 Richard Friedman
Head of Goldman Sachs Capital Partners, Goldman Sachs Group At a firm that bends over backward to quash egos and instill a team ethos, Goldman Sachs Richard Friedman has been almost too much of a standout performer. As head of the firms merchant banking arm, Goldman Sachs Capital Partners, the 51-year-old banker won kudos for Goldmans historic, and hugely profitable, investment in Chinas Industrial and Commercial Bank of China in 2006. Friedman knows his way around a conference room: He was part of the Goldman contingent advising the government on how to save AIG (and, not incidentally, protect Goldmans Friedman may multibillion-dollar have a secret exposure). As if he needed it, weapon: His wife, Susan, pals around in the Hamptons with Goldman CEO Lloyd Blankfeins spouse, Laura.

24 Kenneth Moelis
Chief Executive Officer, Moelis & Co. Ken Moelis, 51, might have made a great trader: His market timing is impeccable. In February 2007 he quit UBS as president of investment banking, just before the subprime crisis ignited, hammering many investment banks especially UBS. Later that year, just as boutique investment banks began their ascent, Moelis formed his own firm. Moelis & Co. has advised Hilton Hotels on its sale to Blackstone Group, Anheuser-Busch Cos. on its purchase by InBev and Yahoo! on its defense against Microsoft. Currently, it is counseling Dubai World on its debt restructuring. With 260 employees, Moelis & Co. is expanding into London, Europe and Asia and may branch into other areas of the capital markets. Maybe CEO Moelis will get to test his trading acumen after all.

25 Kenneth Griffin
Chief Executive Officer, Citadel Investment Group Citadel founder Ken Griffin has long been one of Wall Streets biggest and most feared customers. So when rumors started circulating during the crisis that his hedge fund firm was talking to the Feds about a bailout, Griffin held an impromptu conference call in October 2008 to reassure investors that his firm was not about to follow Lehman Brothers into bankruptcy. Although Citadels biggest funds tumbled 55 percent that year, they recovered smartly in 2009, up 59 percent through November. Griffin, 41, is now looking to capitalize on the seismic shifts on Wall Street by launching an investment bank. In November, Citadel Securities underwrote its first debt offering $500 million in senior notes for chipmaker Advanced Micro Devices.