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Old Friends Get New Titles At BlackRock, Legg Mason

If you should ever be able to broker a deal like BlackRock's for Barclays Global Investors, it may be worth your while to do so.
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If you should ever be able to broker a deal like BlackRock's for Barclays Global Investors, it may be worth your while to do so.

BlackRock Inc named Morgan Stanley banker and long-time financial advisor Gary Shedlin as its next chief financial officer, to succeed Ann Marie Petach….

Most notably, Shedlin advised on BlackRock's 2009 purchase of Barclays' investment business to create the world's largest money manager. The former Barclays exchange-traded fund unit, iShares, has been a stellar performer and helped the New York-based firm please investors with expanding profit margins.

Down the cost in Charm City, Legg Mason's board has removed the "interim" from Joseph Sullivan's title as he girds his loins for battle with Nelson Peltz. It seems there were no better alternatives.

Legg Mason Inc. said Wednesday that interim Chief Executive Joseph Sullivan will remain in that post permanently, ending a months-long search that stretched across Wall Street….

Legg Mason directors reviewed about 15 external candidates and two internal candidates, according to a person familiar with the search.

Recruiters Korn/Ferry International handled the CEO search.

And really earned their keep, don't you think?

BlackRock names Morgan Stanley banker Shedlin CFO [Reuters]
Legg Mason Names Sullivan CEO [WSJ]



Boring Bill Miller Amicably Ends 35-Year Run At Legg Mason

We hate this kind of subdued professionalism.

At Some Point In The Future, BlackRock Might Sue Over Libor Manipulation

Or it might not. No one can say at this time. Charlie Gasparino reports: BlackRock has $240 billion in money market assets, much of which is priced off of Libor. Thus even artificially depressing Libor a bit could mean that the firm’s customers missed out on billions upon billions in investment returns. A BlackRock spokeswoman told FOX Business: “We are closely following the investigations as well as related litigation to assess the full implications and possible impact these events may have had on our clients and the cash markets. The implications of the various investigations and litigation are complex and it will be some time before greater clarity emerges.” Indeed, people inside BlackRock say assessing damages won’t be easy. First it’s unclear just how much the manipulation cost fund investors since the evidence so far shows that banks like Barclays only depressed their Libor submissions during certain periods of time, particularly during the financial crisis, when they didn’t want to alert investors that they were being charged higher interest rates to borrow money. BlackRock Mulls Legal Action Amid Libor Scandal [FBN]

BlackRock Employee Has Less Than One Hour To Stretch, Mentally Prepare For Shot At Olympic(-ish) Glory (Update)

BlackRock sees your piddling food eating contests and raises you a real challenge. The contender: BlackRock portfolio manager The event: Long jump, on the trading floor The details: "The guy jumped 25 feet in college; market is biased at him going 15 feet and shorter. $2,000 pool so far. Larry Fink has $50 on the guy crossing 15 feet. Jump is at 3PM." While sadly there are no special uniforms involved (the guy is wearing "work clothes and sneakers") and no sand pit, this is still nevertheless tremendously exciting. But first up, men's freestyle wrestling. We'll be back after this. Stay tuned.

By Luis Villa del Campo from Madrid, Spain (Times Square - NASDAQ) [CC BY 2.0], via Wikimedia Commons

Capital Is Pumping Into ETFs

And a few Wall Street titans are cashing in.