PNC Financial Services Group Inc., the largest shareholder of asset manager BlackRock Inc. (BLK), named BlueMountain Capital Management LLC co-founder Andrew Feldstein to the bank’s board.
Feldstein, 48, helped start his $15.7 billion credit and equity derivatives hedge-fund firm in 2003 after working for a decade at JPMorgan Chase & Co. (JPM), Pittsburgh-based PNC said yesterday in a statement. He was appointed to the risk and compensation committees, according to a regulatory filing.
PNC Chief Executive Officer Bill Demchak, who succeeded Jim Rohr in April, worked with Feldstein at New York-based JPMorgan, now the biggest U.S. bank, where they helped build the company’s derivatives business. Feldstein, a graduate of Harvard Law School, joined JPMorgan in 1992, overseeing structured credit, high-yield sales, trading and research, and global credit portfolio, PNC said in the statement.
Feldstein “brings a reputation for innovation and additional risk-management expertise,” Rohr, now PNC’s executive chairman, said in the statement.
Feldstein is known for betting against JPMorgan trader Bruno Iksil, the Frenchman dubbed the “London Whale” because of the size of his credit-derivatives portfolio. The move reaped $300 million for New York-based BlueMountain, people familiar with the matter said previously. JPMorgan lost more than $6.2 billion last year on its bet, and U.S. prosecutors this week charged two former traders with wire fraud and conspiracy, accusing them of trying to conceal the losses.
As of June 30, PNC held a 21 percent stake in New York-based BlackRock, the world’s biggest money manager, according to data compiled by Bloomberg.