From Worst to First

The fickleness on Wall Street never ceases to amaze. Veterans know that just when you think you're scraping the bottom of the barrel, a turn of events can quickly vault you right back up to the top of the heap.

Just ask Louis Lebedin. As the head of prime brokerage for Bear Stearns, Lebedin battled through the dramatic run on the bank that led to its demise in March. Hedge fund clients began fleeing from Bear a year ago, as the credit crisis gained traction and the bank's stability teetered. The firm that was once seen as the top choice for many hedge fund accounts suddenly became a movie theater on fire, and Lebedin was left holding the dry fire hose.

Fast forward to October 2008. Lebedin was hired by J.P. Morgan as head of equity prime brokerage and now everyone wants a piece of him.

After Lehman's collapse, hedge fund managers around the globe had a wake up call. Where would their money be safe? Goldman Sachs and Morgan Stanley, which had been leaders in the prime brokerage business, suddenly began seeing their own clients reevaluating their relationships as the market questioned their viability.

And to whom did the funds turn? To none other than Louis Lebedin.

During a conference call with investors yesterday, J.P. Morgan chief executive Jamie Dimon said that prime brokerage assets had increased by 25 percent during the last quarter.

Sometimes, you have to make change happen. And other times change happens to you.

by Megan Barnett

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