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Alumni In the News - January 16, 2004
Brock Vandervliet predicts major bank merger |
If you did a Google news search on the name "Brock Vandervliet" on Jan. 15 you would come up with nearly 100 hits.
Vandervliet, a 1990 graduate who majored in political science, was quoted in publications such as The
New York Times, CNN/Money, The International Herald Tribune and the Associated Press.
An analyst for Lehman Brothers, he had issued a report last Friday that promoted the benefits of a merger
between J.P. Morgan Chase & Co. and Bank One Corp.
On Wednesday, J.P. Morgan Chase agreed to acquire Bank One for $58 billion. As the biggest bank merger in five years, the story was prominently covered in the financial press, and Brock's report began to receive a great deal of attention. He appeared on CNBC and was interviewed by a number of financial reporters.
In a profile of Brock, Bloomberg Financial News noted that of the many reports he has written for Lehman Brothers, "perhaps none will prove as prescient as the one he penned last Friday on J.P. Morgan Chase & Co. and Bank One Corp." The profile noted that Brock's report was based on a careful financial analysis of both companies.
Dickinson College president William G. Durden '71 praised Brock's accomplishment. "This points to a demonstrable way in which a liberal arts education gives one the edge in the working world," he said. "The excellent analytical skills that Brock clearly displayed are just one important ambition of a Dickinson education."
The full text of the profile is provided here courtesy of Bloomberg LP.
Lehman's Vandervliet Foresaw J.P. Morgan Transaction
Jan. 15 (Bloomberg) -- Brock Vandervliet has written more
than 200 reports as a Lehman Brothers Holdings Inc. analyst.
Perhaps none will prove as prescient as the one he penned last
Friday on J.P. Morgan Chase & Co. and Bank One Corp.
In a seven-page report issued before the market opened,
Vandervliet talked up the benefits of a merger between the two
companies and said investors would likely want to see Bank One
Chief Executive Officer Jamie Dimon run the combined giant.
"One transaction that would be potentially extremely
compelling would be a merger of J.P. Morgan and Bank One," wrote
Vandervliet, couching his words by saying he didn't "have any
sense for the probability of it actually occurring."
Soon after the banks announced their $55.1 billion merger
yesterday, Vandervliet's phone started ringing. He was
immediately booked for television interviews to discuss how he
managed to get the scoop on the transaction.
Reached at his Manhattan office, Vandervliet was a little
dazzled by the attention he received for his report, which
included such headlines as "JPM/One: 1+1 Might Equal 3."
"The report was not based on extreme management know-how or
someone whispering in my ear," Vandervliet, 35, said in a
telephone interview. "It was based on putting the earnings and
revenue mix of both companies next to one another and thinking it
would be an impressive deal."
Vandervliet said the merger marries Bank One's strong retail
and credit card business with its rival's dominance in investment
banking and trading. The combined banks would have less volatile
earnings than if they stayed separate and would be "less market
sensitive," he said.
Ego Clash?
Even so, the analyst said he thought the marriage could
founder because of a "potential clash of cultures and egos."
The biggest bank merger since 1998 creates a diversified
financial group with $1.08 trillion of assets. With the purchase,
J.P. Morgan will gain a U.S. consumer branch network matched only
by Citigroup Inc. and Bank of America Corp.
Of Bank One's Dimon, Vandervliet wrote: "We view Jamie
Dimon's role as critical in running the organization out of the
gate or with a dominant role in its integration and a clear path
to succeed Bill Harrison."
Under the merger plans announced yesterday, Dimon will
become CEO in 2006, succeeding Harrison, which makes sense to
Vandervliet. "J.P. Morgan is undermanaged and in a bit of a
muddle," he said. "Dimon is a very strong leader and I couldn't
imagine him taking one step back to move two steps forward."
Vandervliet began covering J.P. Morgan and Bank One in July
2002. A graduate of Dickinson College in Pennsylvania and the
University of Maryland, he went to work at Keefe, Bruyette, &
Woods Inc. in April 1996 before leaving for Salomon Smith Barney
Inc. in October 1999.
The analyst probably will be rewarded for his report, said
Michael Sheldon, the chief market strategist at Spencer Clarke
LLC.
"I would think his bonus is going to go up," said Sheldon.
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