KBW Bolsters Research Effort Following Rapid Growth

NEW YORK--(BUSINESS WIRE)--In response to significant growth over the last several years, KBW, Inc. (NYSE: KBW) a full service investment bank that specializes in the financial services sector, today announced that Frederick Cannon will join John Howard as Co-Director of Research, effective immediately. Based in the firm’s New York City headquarters, Messrs. Cannon and Howard will manage one of the largest financial services research groups in the country.

“In light of the expansion of the department’s scope and workforce over the past years, we believe this change will enhance the focus of the group’s leadership and enable the business to grow while still delivering an innovative and superior research product,” said John Duffy, KBW Chairman and CEO. “These changes are indicative of our goal to make what’s already the premier financial services research offering on Wall Street even better.”

Since 2005, KBW has:

• Increased the number of U.S. and European financial companies under coverage by 30 percent (from 393 to 511).
• Expanded coverage into several new financial sub-sectors including real estate investment trusts (REITs), mortgage finance companies and homebuilders.
• Grown the total number of research personnel to 100 employees; an 18 percent increase.
• Launched 10 additional financial services indices and 5 exchange-traded funds (ETFs).

Mr. Howard, who has been Director of Research since 2003, will focus on the insurance, equity REIT and capital markets sectors. He will also spearhead KBW’s quantitative research and ETF initiatives, both of which have grown notably in scope. The family of KBW ETFs currently has nearly $1.6 billion in assets under management.

The bank and diversified financial groups will report directly to Mr. Cannon who will also lead the firm’s Washington research effort. Mr. Cannon will also retain his current position as Chief Equity Strategist where he is responsible for identifying and analyzing important trends in the overall financial services sector.

John Howard is a 27-year veteran of the company and has spent virtually his entire professional career at the firm. Before joining the Research Department in 2003, he managed KBW’s office in Hartford, Ct. where he was responsible for overseeing a full staff of salespeople, traders and research analysts. Mr. Howard graduated from Dartmouth College and received his M.B.A from the University of Connecticut.

Most recently serving as Associate Director of Research, Mr. Cannon joined KBW in 2003 providing equity research on banks and thrifts with a specialization in the mortgage sector. He remains one of the most highly respected analysts on Wall Street and is quoted frequently in the national media on banking and lending issues. Prior to joining KBW, Mr. Cannon was Executive Vice President, Director of Investor Relations and member of the Operating Committee for Golden State Bancorp and its subsidiary, California Federal Bank. He also spent 16 years at Bank of America, first as an economist and later as Director of Investor Relations.

About KBW

KBW, Inc. through its subsidiaries Keefe, Bruyette & Woods, Inc., Keefe, Bruyette & Woods Limited and KBW Asset Management, is a full service investment bank specializing in the financial services industry. Founded in 1962, the firm is widely recognized as a leading authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. The firm has established industry-leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading for financial services companies.

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