Flagstar promotes new executive; Firstar Financial acquires Stigler

November 10, 2023 2:49 PM

Flagstar Bank promotes newly hired Jason Birnbaum; Finstar Financial tops $1billion-asset threshold with acquisition of Sitgler; digital platform Bluevine launches checking account for high balances; and more in the weekly banking news roundup.

Flagstar taps ex-First Republic executive to oversee private banking

Flagstar Bank has promoted one of its newly hired executives to oversee its private banking business. Jason Birnbaum, who joined Flagstar in June from the failed First Republic Bank, is now executive vice president and president of Flagstar's private bank, Flagstar announced in a press release. Six private banking teams from First Republic joined Flagstar over the summer, a few months after the company was acquired May 1 by JPMorgan Chase. Birnbaum, who worked at First Republic for 16 years, succeeds Eric Howell, who joined Flagstar in March after Flagstar acquired Howell's former employer, Signature Bank, which failed in March. Howell will now move into a nonexecutive advisory role at Flagstar, the company said. Birnbaum will report to Reggie Davis, Flagstar's senior executive vice president and president of banking. Flagstar is the banking arm of New York Community Bancorp in Hicksville, New York. — Allissa Kline

Firstar in Oklahoma to top $1billion-asset threshold with acquisition of in-state peer

Muskogee, Oklahoma-based Firstar Financial Corp. agreed to acquire Oklahoma-based Stigler Bancorp. in a deal that would create a combined banking company with $1.1 billion of assets. Terms of the deal were not disclosed. The $927 million-asset Firstar said in a Nov. 2 press release it would acquire about $126 million of assets and nearly $128 million of deposits. A targeted closing date was not provided, but Firstar said the transaction remains subject to approval by Stigler Bancorp. shareholders and state regulators. Performance Trust Capital Partners advised Firstar. — Jim Dobbs

Small-business neobank launches a checking account for high balances

Bluevine, a digital banking platform for small-business owners, debuted a new checking account this week for businesses with balances of $100,000 or more. Bluevine Premier builds on the standard checking account, which insures balances of up to $3 million per depositor. Premier yields 4.25% on balances of up to $3 million, a reduction on most standard payments fees compared with the standard account, priority access to customer support and more. Customers must maintain a $100,000 minimum average daily balance across their checking account and subaccounts, and spend at least $5,000 per month on their debit cards to avoid a $95 monthly fee. — Miriam Cross

Comerica hires Brian Goldman as its next chief risk officer

Dallas-based Comerica has hired former Citigroup and Goldman Sachs executive Brian Goldman as its new chief risk officer. Goldman, who will start next month, was most recently head of operational risk at Citibank's Institutional Clients Group. He also held top risk management roles at Goldman Sachs, including as head of operational risk. He will replace Jay Oberg, who is retiring in December 2024 after 32 years at the bank. Oberg, who's been Comerica's chief risk officer since 2019, is staying at the bank for the next year as senior executive vice president. — Polo Rocha

UBS hires Moelis banker Jardine for software dealmaking

UBS Group hired Moelis Managing Director Andrew Jardine, according to people with knowledge of the matter. Jardine, who has worked at Moelis since 2017, will report to Laurence Braham, the Swiss bank's global co-head of technology investment banking, said one of the people, all of whom requested anonymity to discuss the appointment that is not yet public. The hire follows UBS' addition of Steve Pettigrew as co-head of software earlier this year. A UBS spokeswoman declined to comment and a Moelis spokeswoman didn't immediately respond to a request for comment. — Gillian Tan, Bloomberg News

Morgan Stanley top technology banker Ren Chen has left

Morgan Stanley's Ron Chen, global head of internet investment banking, has left the firm, marking the second high-profile technology banker to leave the U.S. bank in about a week.

Chen first joined Morgan Stanley in 2009, holding various roles over the years, including leading its China and Southeast Asia telecommunications, media and technology investment banking team from Hong Kong. He became the global head of internet investment banking based in New York in January last year.

A representative for Morgan Stanley declined to comment, while Chen didn't respond to requests for comment.

Henry Tsai, another key technology banker leading Asia-Pacific internet investment banking, also left the U.S. bank last week. Tsai was formerly director of corporate finance at Alibaba Group Holding, according to his LinkedIn profile. — Dong Cao and Pei Li, Bloomberg News

Goldman hires Credit Suisse bankers in Middle East wealth drive

Goldman Sachs has hired three Credit Suisse bankers as it builds its presence in a swath of the Middle East that's increasingly becoming a destination for the world's rich. Fahad Alebrahim will join the firm to focus on Kuwait after previously working in the Swiss bank's strategic-client segment, according to a person with knowledge of the matter. Wealth advisors Arvind Gulati and Anthony Hage will join Alebrahim and all will be based in Dubai, the person said, who asked not to be identified as the details are not public.

The Middle East is rapidly emerging as one of the world's key battlegrounds for global wealth managers, with the United Arab Emirates alone expected to attract 4,500 new millionaires this year, according to consultancy Henley & Partners. — Ben Stupples, Bloomberg News