When Thomas Michaud talks about his co-workers at Keefe, Bruyette & Woods, he describes the firm as a family. The vice chairman and chief operating officer at the New York City-based broker/dealer and investment bank says having several hundred employees across the nation, a small number when it's sized up against competitors, has always given Keefe's offices an intimate feel.
Keefe, Bruyette & Woods was headquarted in the World Trade Center and lost 67 employees on Sept. 11. And now, Michaud says, Keefe operates like a family more than ever before.
"Whatever emotions this firm's employees may share, it has all been channeled into our determination to rebuild," says Michaud.
Keefe, Bruyette & Woods has remained focused despite tragedy, and has begun rebuilding by promoting several executives in the bank, and bringing in a group of new employees to its research and trading departments.
Starting at the top, John Duffy has been named chairman in addition to his position as chief executive officer. Duffy had been co-CEO, along with Joseph Berry, who was lost in the attack. Andrew Senchak, vice chairman and director of corporate finance, has been promoted to president. Michaud, executive vice president and director of equity sales, has been named vice chairman and chief operating officer as well.
Five of KBW's nine directors remain missing. Michaud says that for now the company will operate with five board members. Joining Duffy, Senchak and Michaud as directors, will be John Howard and Michael O'Brien. Howard is a senior vice president and manager of KBW's largest regional office in Hartford. O'Brien, was also promoted to CEO of KBW Asset Management, a KBW subsidiary.
KBW also has created a new executive group, the office of the chairman. Duffy, Senchak and Michaud will serve in this group. "We have been working together for 15 years," says Michaud, "so we don't need time to get to know each other. John wanted to get a team together that had both sides of the business reporting to him."
Michaud says the executive changes have been made to provide an improved structure for decision making. "We have so much work ahead of us, we need to be able to make decisions more quickly. A three-man office of the chairman should help us make important decisions, and make them quickly."
Michaud spends most of his time these days rebuilding the research and trading departments. "We're working urgently on re-staffing, but prudently as well. Getting the right people is what's important to us."
KBW has found several people to join its research and trading teams. Michael Corasaniti was named director of research in late October. He had been with Neuberger Berman, LLC, where he served as managing director and portfolio manager.
Thomas McCandless also joins KBW as a senior vice president in the research department, where he will be covering regional banks. He was most recently an executive director and senior bank analyst for CIBC Oppenheimer. Joining McCandless in the research department will be Vincent Daniels, a vice president covering credit card and consumer finance companies; and Jeffrey Spetalnik, a quantitative analyst.
Michaud says KBW has yet to seek the assistance of a recruiting firm, but may do so in the coming months. "Mostly we've relied on referrals from clients," says Michaud. "Being in the business for 40 years, KBW has enough contacts to find the right people."
But KBW has also tapped some of its alumni to rebuild its equity trading group. Phil Cuthbertson spent 20 years at KBW, including 13 as its head trader before retiring in 2000. He returned to the trading group in October, to an unspecified position. Lawrence Vitale is another former KBW employee who rejoins the equity trading team. He spent seven years with the firm as a research analyst covering regional banks, before leaving in 1991. Al DiAntonio also re-joins KBW as a senior vice president of equity sales and trading.
KBW is continuing to search for new employees, and Michaud says he receives 35-50 resumes each day. He says Keefe Bruyette is about "one-third of the way" towards completing its re-staffing efforts.
"We are very committed to rebuilding this company," says Michaud. "We had an excellent year last year, and we plan to be just as strong, if not stronger, in the future."
KBW will continue to pay the salaries of the 67 employees lost in the World Trade Center indefinitely, says Michaud. So, as he says, "By rebuilding, the number one thing we enable ourselves to do is take care of our families."
