Exodus continues as bankers leave fund-raising team for NYS' McCall.

Two top executives at First Albany Corp. have decided not to help the New York State comptroller raise campaign funds, despite appearing on an invitation announcing an upcoming fund-raising reception.

The executives, George McNamee, First Albany's chief executive officer and chairman of the board, and Hugh Johnson, the firm's chief investment officer, are listed on the fund-raising notice as "The Friends of H. Carl McCall," who is running next year for his first full term as state comptroller.

The list includes a number of state Democratic leaders, including Lieut. Gov. Stan Lundine.

A spokesman for the Albany, N.Y.-based investment bank said yesterday that despite appearing on the list of major supporters for the Nov. 16 event, neither McNamee, a registered Democrat, nor Johnson, a registered Republican, will raise money for the Democratic comptroller or make personal contributions.

The spokesman said the executives agreed to support McCall before an accord reached by many of the municipal market's largest firms on Oct. 18 prohibiting political contributions to state and local officials who select bond underwriters. The spokesman said First Albany will participate in the voluntary ban, and the executives will not attend the Nov. 16 reception, which is scheduled to be held at the Omni Albany Hotel in Albany.

"Obviously, Mr. McNamee and Mr. Johnson agreed to join the committee before the ban," the spokesman said. "When they asked to be removed from the list, it was too late. Everything was printed and mailed."

The listing of McNamee and Johnson as supporters of McCall is the second incident in which members of firms that have agreed to ban campaign contributions have appeared on McCall fund-raising literature.

On Oct. 29, The Bond Buyer reported that David C. Clapp, a general partner at Goldman, Sachs & Co.; Felix G. Rohatyn, a partner at Lazard Freres & Co.; Richard Jenrette, chief executive officer of the Equitable Companies, which owns Donaldson, Lufkin & Jenrette Securities Corp.; and James E. Cayne, chief executive officer at Bear, Steams & Co., are listed on an Oct. 25 letter soliciting contributions for a McCall fund-raiser scheduled for Dec. 7. All four executives belong to firms that joined the accord.

Clapp and Rohatyn have since said that they will not make contributions nor solicit money, in accordance with the ban. Cayne has refused to comment, while a spokeswoman for Jenrette has said that he is not covered by the accord.

After reports about the involvement of the four executives, McCall issued a policy statement on his campaign fund-raising practices. The statement called for the resignation from the fund-raising committee of all executives covered by the Wall Street ban on contributions, and took other steps to separate his duties as comptroller from his fund-raising activities.

A press official for McCall had no comment on the latest developments. McCall, who was appointed comptroller following the resignation of Edward V. Regan, plays an important role in New York capital financing needs, including the selection of some underwriting syndicates for municipal bond deals.

First Albany is one of the strongest regional bond firms in the municipal industry. This year, the firm has been named as a senior manager or a co-manager on 116 deals totaling $12.5 billion.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER