Breaking News from CNBC's Kate Kelly: JPMorgan's Staley Joins BlueMountain
When: Today, Tuesday, January 8, 2012
Where: CNBC's "Squawk Box"
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. Additionally, here is a link to Kate's story on CNBC.com: http://www.cnbc.com/id/100362255.
All references must be sourced to CNBC.
KATE KELLY: INTERESTING NEWS OUT OF BLUEMOUNTAIN CAPITAL MANAGEMENT THE $12 BILLION HEDGE FUND. THEY ARE HIRING JES STALEY, FORMER INVESTMENT BANK CEO OF JPMORGAN. HE SERVED THAT ROLE FOR THREE YEARS AND STEPPED DOWN FROM IT LATE LAST YEAR. HE'S GOING TO BE JOINING BLUEMOUNTAIN WHICH, OF COURSE, WAS FOUNDED BY FORMER JPMORGAN FOLKS, NOTABLY CEO AND CIO ANDREW FELDSTEIN. COUPLE OF INTERESTING THINGS ABOUT THIS, JES STALEY HAS ASSET MANAGEMENT EXPERIENCE, HE ACTUALLY RAN THE ASSET MANAGEMENT UNIT WITHIN JPMORGAN AND WAS RESPONSIBLE FOR THEIR HIGHBRIDGE DEAL. SO HE'S VERY EXPERIENCED IN THIS AREA. THE OTHER THING BLUEMOUNTAIN IN A YEAR WHERE HEDGE FUNDS HAD A LOT OF TUMULT, A LOT OF TOUGH PERFORMANCES AND REDEMPTIONS IN ONE SENSE, ACTUALLY WAS A HUGE WINNER THEIR UP NORTH OF 10% IN THEIR FLAGSHIP FUND FROM WHAT I'M TOLD AND THEY'RE PROBABLY GOING TO BE EXPANDING AND CONSIDER STALEY TO BE PART OF THE SORT OF INSTITUTIONALIZATION PROCESS. AND FINALLY, YOU KNOW, THOSE TWO ENTITIES HAD AN INTERESTING RELATIONSHIP LAST YEAR, BECKY, AS JPMORGAN OF COURSE GOT INTO THESE LONDON WHALE TRADES, AND LOST SIX OR MORE BILLION DOLLARS. FELDSTEIN AT BLUE MOUNTAIN WAS ON THE OTHER SIDE OF THE UNWIND OF THAT TRADE AND MADE A PROFIT ALTHOUGH I'M TOLD IT WAS A VERY FRIENDLY TRANSACTION AS MUCH AS THESE THINGS CAN BE.
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