With a rumored eight new hires set to start at Royal Bank of Canada this week, managing director and head of global securitization John Rhinelander, who recently jumped ship from JP Morgan, is now poised to poach talent from his former employee, sources say. Topping the list of ABS pros to follow is Robert Jones, former co-head of JP Morgan's ABCP business.
Jones had managed JP Morgan's Delaware Funding Corp. conduit, one of the world's largest and most prestigious multiseller ABCP programs.
Joining Jones in new positions this week are Steve Adams, Veronica Gallagher, Janine Marsini, Kevin Wilson and Kim Wagner, with word on the Street being that there are more defections to come. Rhinelander said the team, "together for ten to 15 years" at JP Morgan, will be involved in a combination of origination, coordination and development of Web-based initiatives. The team will be based in New York City.
Seeking to expand its global presence in the securitization markets, Rhinelander began in his new position last Monday at RBC as managing director and head of global securitization. He takes over for Stephan Grossnickle, who was dismissed last week and replaced with Rhinelander. Also departing with Grossnickle was Frank Constantinople, who sources described as Grossnickle's "right hand man."
Rhinelander was said by market sources to have been unhappy with the new management structure in place in the wake of the JP Morgan/Chase merger. For the record, Rhinelander said he wishes his former colleagues well, hoping both "(RBC) and JP Morgan success in the future."
Rhinelander had been at JP Morgan since 1985 when he joined as an associate, ascending to the role of managing director in 1999. At RBC Rhinelander will report to Mark Hughes, head of global credit for the Toronto-based bank.
"He (John) is superbly qualified to run a global team and his stature with clients, regulators and rating agencies is unparalleled in this industry," Hughes said in a prepared release.
Taking over at JP Morgan is Brad Schwartz, who had been co-head of the North American Conduit business along with Rhinelander. Schwartz will report to Michael Malter and Blythe Masters, co-heads of JP Morgan's North America Asset Backed Securities group.