The Wall Street Journal-20080126-The Buzz- Upheaval Might Benefit Wall Street-s Free Agents
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The Buzz: Upheaval Might Benefit Wall Street's Free Agents
NEW YORK -- Wall Street CEOs weren't the only ones to get canned after their firms racked up huge losses last year. One rung down the corporate ladder, a group of high-powered bankers also lost their jobs.
Now these onetime rising stars are testing the job market -- and attracting what appears to be lots of interest from former rivals.
Two of them are among Wall Street's best-known capital-markets executives: Thomas Maheras, the former co-head of Citigroup Inc.'s investment bank, and Thomas Montag, who was co-head of Goldman Sachs Group Inc.'s global securities business.
Mr. Maheras, 45 years old, is in talks with Bear Stearns Cos. about taking a high-level job there, according to people familiar with the matter. He was one of several senior Citigroup executives that left last year amid losses stemming from exposure to soured mortgage- related investments.
Mr. Montag, 51, is being pursued by a number of investment banks and has had talks with Morgan Stanley executives, people familiar with the situation said. In a recent interview, Merrill Lynch & Co. Chief Executive John Thain, also a Goldman alumnus, said he is "hopeful" that Mr. Montag would "join us."
Many Street firms need to rebuild businesses depleted by recent turmoil and the job cuts under way at several big investment banks.
"At a number of levels, there are firms in need of experience and there are people with experience and without jobs," says one recently deposed Wall Street executive.
Among the banks hunting for senior talent is UBS AG. The Swiss bank's investment bank, leaderless following the firing of its CEO, has talked to Messrs. Maheras and Montag about the top job, people familiar with the matter said.
Some other top-tier Wall Street executives, including some who were demoted or reassigned but not fired, appear to be headed for hedge funds and private-equity firms, which have been aggressively recruiting them.
Warren Spector, Bear's co-president until his ouster last August, has yet to land anywhere. He told friends he would take the rest of 2007 off. A person familiar with the matter says Mr. Spector, who oversaw Bear's capital-markets business, is looking at hedge-fund jobs.
