Home Wealth Management Advisor Who Joined First Republic in March Returns to Morgan Stanley

Advisor Who Joined First Republic in March Returns to Morgan Stanley

Advisor Who Joined First Republic in March Returns to Morgan Stanley


J.P. Garofalo, a Los Angeles-based monetary advisor whose staff joined First Republic Funding Administration in early March, has returned to Morgan Stanley, in line with regulatory filings. Garofalo BrokerCheck profile signifies he’s nonetheless registered with First Republic, however registered with Morgan Stanley on April 13, 2023.

Garofalo and his staff left Morgan Stanley in early March for First Republic. The staff oversaw $1.2 billion in belongings, in line with printed reviews. Garofalo led the group alongside Alexander Kadish and Nicholas Davey, who seem to nonetheless be with First Republic, in line with registration filings as of Wednesday night. The staff supplied portfolio administration, retirement planning, funding consulting and different wealth administration companies to people, households, nonprofits and personal household foundations.

Morgan Stanley and Garofalo didn’t return requests for remark by press time.

Garofalo is the most recent advisor to depart First Republic within the wake of a disaster spurred by the collapse of Silicon Valley Financial institution. After SVB’s implosion, First Republic additionally appears endangered, with prospects pulling deposits and buyers promoting shares, inflicting the inventory to drop practically 90% in worth over the previous weeks. 

On Monday’s earnings name, First Republic Financial institution CEO and President Mike Roffler mentioned departing groups accounted for lower than 20% of complete wealth administration belongings as of March 31. First Republic says it has retained practically 90% of its advisors, as of April 21.

The financial institution’s inventory plummeted 49% on Tuesday after reporting an outflow of greater than $100 billion in deposits in March. On Wednesday, shares fell one other 30%.

Now, the financial institution is taking steps to strengthen its enterprise, together with relying much less on large depositors and specializing in loans that may be offered on the secondary market. However these strikes add to stress on the agency’s once-prized wealth administration enterprise, Bloomberg reviews.

Roffler additionally mentioned the agency is exploring strategic choices. Bloomberg reviews the financial institution is weighing whether or not to divest $50 to $100 billion of belongings.



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