Merrill Lynch & Co. announced Friday that Michael Lexton and Edward Malmstrom would jointly take on leadership of the firm's public finance effort, succeeding Jeffrey Humber, who has left the division to head a new Global Diversity group at the brokerage giant.
In his new duties, Humber will advise executive management on issues and strategies that will ensure that the firm's global policies and practices provide a "supportive and inclusive work environment," the firm said in a statement. Humber's new role will take effect on Dec. 1. He will be responsible for the firm's Corporate Responsibility group.
"We are delighted to have someone of Jeff's depth and experience assume the mantle for our global diversity efforts," said David Komansky, chairman and chief executive officer of Merrill Lynch, in a statement. "His deep personal commitment to diversity, as well as his extensive management, client relationship, and strategic experience, will be valuable as we continue to realize our goal of making Merrill Lynch the best place to work for everyone."
With Humber gone, the firm has decided to divide responsibilities in the department between Lexton and Malmstrom. Malmstrom will continue to head its health care, housing, and education practice, while Lexton, who joined the firm 18 months ago from Lehman Brothers to help enhance its transportation effort, will oversee everything else. Both men will report to John Lawlor, head of Merrill's municipal securities group.
Lexton said that in his new position, he intends to coordinate the public finance division's regional offices around the country in an attempt to provide "a sharper focus on serving the clients." He said that he is still formulating the other goals he hopes to set for the division.
"In the end, we want to have the broadest distribution capabilities in the country," he said. "Basically, we wanted to come up with the best financial solutions for our clients."
One thing he said he is sure of, however, is that in contrast to a number of other firms that have left the business recently -- most notably Prudential Securities Inc., which shuttered its public finance department as part of a broader pullback from the fixed-income markets last week -- Merrill will remain in municipals for the long haul.
"This is a business that Merrill Lynch is committed to," Lexton said. "We can serve our clients better with the breadth that this initiative offers."
While he is eagerly taking on the greater management role, Lexton said he enjoys both the management side of the business and the client involvement, and that he would continue to work with his own clients.
"I like being on the road and being with clients," he said. "That's how I built my career. I was actively involved with the Denver Airport situation ... in the mid-90s. I was one of the bankers that helped them get over the hump. If nothing else, my forte in the business is problem solving."
Although Lexton realizes that there are many challenges facing public finance professionals today, he said the challenges aren't insurmountable.
"At times I feel more daunted than other times," he said. "One can make a fairly profitable business out of municipal finance."
