Deals & People January 3, 2011

Galateria Takes JPAM DCIS Reins from Musto

J.P. Morgan Asset Management (JPAM) has tapped John Galateria as managing director, head of Defined Contribution Investment Solutions (DCIS). 
Reported by

An internal memo from David Musto, managing director, COO, Retirement Plan Services, said Galateria will oversee JPAM’s DCIS intermediary, platform, and plan sponsor sales teams as Musto focuses on his new role as COO for Retirement Plan Services. Musto was previously the head of the DCIS group (see “J.P. Morgan Asset Management Realigns DCIO Teams“).

Galateria will also participate in efforts across IMA businesses to advance DC-focused product set and thought leadership. “With more than $3 trillion in DC assets forecasted to change hands due to new manager searches and participant activity over the next five years, succeeding in the investment-only DC business will continue to be a critical component of our retirement strategy,” Musto said in the memo. 

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According to Musto, Galateria joins JPAM from T. Rowe Price where he recently led distribution for its Retirement Plan Services business. Earlier in his career, he also worked at Great-West Retirement.  

Galateria will report directly to Michael Falcon, head of Retirement for J.P. Morgan Asset Management (see “Falcon Named JPAM Retirement Chief“). Glenn Dial, Heidi Walsh, and Brant Wong will report to Galateria (see “Walsh Jumps to J.P. Morgan Asset Management“). 

Galateria will replace Musto on the Funds Management Operating Committee and the Institutional Segment Management Team.

 

  

Compliance January 3, 2011

Wilmington Trust Targeted in 401(k) Investigation

Looks like the New Year is going to kick off on a litigious note. 

 

Reported by

Bright and early Sunday morning, the law firm of Stull, Stull & Brody announced that it has commenced an investigation relating to the 401(k) defined contribution retirement plan of Wilmington Trust Corporation.   

According to the press release, Stull, Stull & Brody says that “among other things,” it is investigating “whether fiduciaries of the Wilmington Trust Thrift Savings Plan, a 401(k) plan, may have violated the Employee Retirement Income Security Act of 1974 (“ERISA”) by failing to disclose the Company’s true operating condition to participants and beneficiaries of the plans (including disclosures relating to the Company’s eroding loan quality, the heavy concentration of the Company’s loans in areas experiencing loan troubles, and growing cash shortages), by offering Company stock as an investment option under the plan when it was not prudent to do so, and/or by allowing an imprudent overconcentration of Company stock in the Company’s 401(k) plan.” 

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As is customary in such announcements, the law firm proceeds to note that those who held Wilmington Trust stock in an individual account in the Wilmington Trust Thrift Savings Plan or employee stock purchase plan “…may, if you wish, consult with a representative of Stull, Stull & Brody at no cost or obligation.”

You can read more about the so-called “stock drop” suits in PLANSPONSOR’s magazine article, “It’s a Jungle Out There.” 

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