Bear Stearns Broker-Dealer Services focuses on hiring

NEW YORK — After completing an overhaul of its top management late last year, Bear Stearns’ clearing and custody unit continues to hire new executives — some of whom are being recruited from top rivals.
After an internal restructuring involving various business groups, Richard Lindsey in November resigned as chief executive of Bear Stearns Broker-Dealer Services and was replaced by Joe Triarsi and John Tyers, both senior managing directors.
After that, the unit received “a significant increase in commitment and investment in people, staff and technology” from its parent, Bear Stearns & Co. Inc. of New York, Mr. Tyers said.
“The core product of clearing is a commodity,” Mr. Triarsi said.
The new hires are a way to “share knowledge” with broker-dealer clients, he said.
Also, BDS wants to “move beyond” the core services of a clearing firm and give its clients access to a sophisticated platform that includes capital markets capabilities, structured products, research and managed accounts, Mr. Tyers said.
Focus on experience
This year, the firm has embarked on hiring executives with experience in the clearing industry, Mr. Triarsi and Mr. Tyers said.
For example, in July, BDS hired Michael Calvelli as a managing director. Previously, he had worked for Pershing LLC of Jersey City,
N.J., for 18 years and managed its West Coast operation, overseeing relationships with more than 50 broker-dealers.
Most recently, Mr. Calvelli worked as a consultant.
“We believe we’re hiring some of the finest talent in our industry,” Mr. Tyers said.
The Bear Stearns clearing group has only a limited number of independent-contractor broker-dealers as clients.
However, with 275 broker-dealer clients, it ranks third among clearing firms.
Having Bear Stearns as a clearing firm, however, can make an independent broker-dealer much more attractive to some large wirehouse registered reps, one executive said.
Wirehouse brokers “relate to Bear Stearns,” said Lon Dolber, chief executive of American Portfolios Financial Services Inc. of Holbrook, N.Y. “In their minds, their clients know Bear Stearns.”

American Portfolios, which also has Pershing as a clearing platform as an option for its 450 affiliated reps, last year recruited a “seven-figure producer” from a New York wirehouse, Mr. Dolber said, and the rep visited the Bear Stearns headquarters as part of the recruiting effort.
About half the reps affiliated with the firm clear with Bear Stearns, while the other half uses Pershing, Mr. Dolber said. The Pershing side of the broker-dealer is growing faster because the firm is having success recruiting reps from other broker-dealers who already are on Pershing, he said.
“But wirehouse guys who aren’t at either Pershing or National Financial are very interested in Bear Stearns” when discussing potentially joining the firm, Mr. Dolber said.
Among the top 50 independent firms, most use either Pershing or National Financial Services LLC of Boston, and an increasing number use more than one clearing firm. (InvestmentNews, July 23)
According to InvestmentNews’ survey this year of independent-contractor broker-dealers, only four of the largest independent firms used Bear Stearns.
Along with American Portfolios, those are: First Allied Securities Inc. of San Diego, Investacorp Inc. of Miami Lakes, Fla. and Capital Financial Group Inc./H. Beck Inc. of Rockville, Md.
Firms such as First Allied and American Portfolios are “really looking to go upmarket in terms of brokers and clients,” Mr. Triarsi said. “The independent broker-dealer is not really about the mutual fund of the month anymore.”