Continuing its quest to build an investment banking franchise, Chase Manhattan Corp. recently named John Steinhardt head of U.S. securities.
Mr. Steinhardt, the former head of fixed income at Furman Selz and a veteran of both Goldman Sachs & Co. and Bear Stearns & Co., will be responsible for all investment grade securities, sales, and trading of new securities at Chase.
Mr. Steinhardt's appointment follows that of Mark Davis, a high-profile executive who was co-head of mergers and acquisitions at Salomon Brothers before joining the new Chase in the same role last month.
"This hiring - and that of Mr. Davis - is more of a demonstration that they are serious about their Section 20 involvement," said George Salem, a bank analyst at Gerard Klauer Mattson. "This is another example of filling a key spot in the hole of the Goldman Sachs division of Chase."
Investment grade corporate bonds represent the area in which Mr. Steinhardt could contribute the most, said analysts.
"Between the merger of Chase and Chemical, we have a platform where we can really penetrate Glass-Steagall," said Donald Layton, the head of global markets at Chase.
Glass-Steagall is the Depression-era law that separates commercial and investment banking.
"As a producer, Mr. Steinhardt's background is more in origination, trading, and distribution of corporate bonds," said Mr. Layton. "That is where the penetration of Glass-Steagall is hardest to do."
Mr. Steinhardt will not be involved in the high-yield group, which continues to report to head of global investment banking, James B. Lee Jr.