Magazine article American Banker

E-Finance Analyst, Disgruntled, Quits DB Alex. Brown

Magazine article American Banker

E-Finance Analyst, Disgruntled, Quits DB Alex. Brown

Article excerpt

Gary R. Craft, Deutsche Banc Alex. Brown's prolific e-finance analyst, has left the investment bank after less than a year to revive his own investment research firm.

FinancialDNA.com will produce reports similar to those Mr. Craft wrote during his eight months as a managing director in the San Francisco office of Deutsche Banc Alex. Brown, the U.S. investment banking unit of Frankfurt-based Deutsche Bank AG.

Mr. Craft attracted a fair amount of controversy there. His research publications, including E-Finance Weekly and the theme-based series "Breaking Up the Financial Intermediary," triggered his departure from Deutsche Bank last month, he said.

He said he viewed his job there not as a stock picker but as a strategist on the converging financial services sector in general and emerging companies such as E-Loan Inc. and S1 Corp. in particular.

Mr. Craft, who was earlier a Robertson Stephens Inc. analyst and a research director at E-Offering, said Deutsche Banc Alex. Brown pressured him to expand the number of publicly traded companies he covered and to focus less on broad trends.

Deutsche Banc Alex. Brown representatives did not return calls seeking comment for this article. It certainly would not be the first time a research analyst was called on the carpet by an employer for being too independent or negative.

Thomas Brown, now president of Second Curve Capital in New York, claims to have been booted as Donaldson, Lufkin & Jenrette's star banking analyst two years ago because his superiors thought his negative stance on some large banking deals would choke off deals. Sean Ryan, now at Banc of America Securities, left Bear, Stearns & Co. last year after being silenced for his negative take on First Union Corp., a Bear Stearns client.

"At investment banks everyone is held to the revenue-generating issue," said Rich Repetto, head of e-finance research at Putnam Lovell Securities Inc. …

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