Credit Suisse First Boston gained Jim Regan and David Marani from Prudential Securities last week, following a ruling by New York State Judge Paula Omansky that overturned a temporary injunction prohibiting CSFB from hiring away any more of Pru’s talent.
Marani joins as an associate on the banking side of asset-backed business, while Regan joins the trading team. More movement from Prudential to CSFB is expected this week.
Also last week, CSFB hired John McWilliams as a vice president. McWilliams, who is an eight-year veteran of Salomon Smith Barney, was brought over for his expertise in the auto sector.
In addition to lifting the injunction, Omansky ruled the charges against Joe Donovan, formerly head of ABS at Prudential, unfounded.
The plaintiff, Prudential Securities, had claimed Donovan was in breach of contract by soliciting employees from Prudential.
“You cannot prevent somebody from saying to a future employer, I’d love to come, I have worked with these guys, these are the guys that I’ve worked with in the past,’” the judge said at the hearing. “It borders on a violation of standard First Amendment rights to talk.”
Further, the judge said, “I believe that… Mr. Donovan’s accepting of employment and furnishing a list of names does not violate contract, does not solicit and induce his co-workers to leave, and does not bind First Boston from making its own solicitations.”
Concerning the injunction blocking CSFB, Judge Omansky addressed issues of industry competition, describing CSFB’s “stealing business” as “the realities of a harsh marketplace.”
“You’re dealing with competition here,” the judge said. “They’re stealing your business, they sure are. They intend to steal as much as they can.”
The injunction blocking CSFB was issued after Prudential lost several members of its senior talent to CSFB in mid-March. Among the initial hires are directors Russell Burns, Jonathan Clark, Scott Corman, Brendan Keane and Andrew Yuder, all working in CSFB’s client coverage group. Christo-pher Riccardi joined as a director in the structuring group, focusing on collateralized bond obligations.