Staley, Ex-JPMorgan Exec., Looks To Banks At BlueMountain

Former JPMorgan Chase executive James Staley is eyeing his old industry in his new role as a hedge fund manager.

Staley, who was head of corporate and investment banking at JPMorgan, joined BlueMountain Capital Management in January. And as a member of the $12 billion hedge fund's investment committee, he's deploying his expertise on banking.

Staley told a Bloomberg Hedge Funds Summit yesterday that European bank debt offers an attractive opportunity as new regulations loom.

"As those rules get clarified, so you can force a recapitalization of the banking industry without going to the sovereign, there's going to be tremendous mispricing between the different levels of the capital structure in these banks," Staley said. The new regulations will give banks "a more clearly defined capital structure," he said.