New York City former mayor Rudolph Giuliani is moving into investment banking business announcing the creation of Giuliani Capital Advisors LLC based on his investment company Giuliani Partners. The new unit has purchased under undisclosed terms Ernst & Young Corporate Finance that has offices in New York, Chicago, Atlanta, Los Angeles, San Francisco and Troy, Mich. According to Wall Street Journal, Giuliani completed the purchase of the Corporate Finance division aiming to avoid any conflict of interest with Ernst & Young with whom he had had a long-term partnership in Giuliani Partners. Some experts suspect that the sell-off occurred for a nominal fee.

 

Giuliani Capital Advisors LLC will offer investment banking services to companies facing "complex business challenges, strategic transactions or financial distress."

 

Steven D. Oesterle, a managing director at Giuliani's consulting firm, was appointed CEO of Giuliani Capital Advisors.

 

The move is though likely to enhance Giuliani’s political aspirations as he plans to take part in the 2008 presidential election.

 

“He recognises that Americans tend to be pro business celebrities,” says Mr Basham, a senior fellow and expert in political science at the Cato Institute. “The fact that he is expanding into investment banking is a plus for him, as long as he’s able to counteract any conflicts of interest.”