Top 5 events that shook the industry in 2012…Part 3: People Moves
Join us as we take stock of the most eventful developments in the structured products industry by compiling a top 5 of our most popular content for: Regulation, Product and Provider related, People Moves, Blog posts and Editorial Features. Start the year with a recap on the developments that made the headlines and shook the market in 2012.
In focus today: the top 5 people move headlines - ranked according to total number of views each article received. A summary is provided next to each - full story accessible via the headline link (requires trial or subscriber access) to view.
Top 5 People Moves:
1. Morgan Stanley downsizes equity derivatives
Morgan Stanley has made a number of redundancies this week in its equity derivatives division including equity derivatives and hybrid sales MD, Robin Rinkes, who covered the Benelux region. Rinkes joined the US investment bank from ABN Amro in 2006 where he was an executive director in equity derivatives marketing. The US firm has also made several cuts to its equity derivatives division in Hong Kong this week including equity derivatives traders Etienne Larsabal and Yong Chan Kim. On the structured sales side, Cathy Li, structured sales China, was let go along with a sales executive covering private banks and another sales executive covering Australia. Other redundancies in equity derivatives leaving the US investment bank include head of index volatility trading Tony Stewart, as well as single stock trader Dimitri Kassatkine; head of hybrids trading David McCabe; and hybrids traders Jubayer Miah and Udayan Bhattacharya. Other senior departures in delta one include head of equity delta one strats Rich Evans, and equity delta one strats Chris Ulph, both based in London; in cash, head of cross-product generalist sales Elizabeth Passey, as well as senior global equity sales Luke Wates and Andrew Vaughan-Payne; in cash trading, senior sector trader Ed Bowen was also let go; and in emerging markets, senior salesperson Gail Hamilton has also left the bank.
Société Générale Corporate and Investment Banking (SG CIB) in Paris has kicked off the restructuring of its equity derivatives division with co-global head of cross-asset solutions, Arnaud Safarti, as the most senior casualty. An insider source at SG CIB in London told SRP.com with Safarti's departure Richard Quesette will remain as the sole head of cross-asset solutions. In the meantime, the current head of sales for western Europe, cross-asset solutions, Marc El-Asmar (pictured), will be taking on the role of global head of cross-asset solutions sales, while Hubert Le Liepvre will keep his role as global head of engineering. The same source told SRP.com that the bank's structuring team in Europe will also see some changes as Pierre Lescourret will be appointed head of structuring Europe, with the former co-head of structuring, Ambroise Marquis, to be appointed second in command. Other changes at SG CIB include Christophe Mianné who has been appointed deputy chief executive and Dan Fields who has been promoted to head of global markets. Fields will retain his current title as global head of trading in Paris. In addition, as announced by the bank back in December, Pierre Palmieri has been promoted to head of global finance; while Jean-Luc Parer, an adviser to SG CIB's management, will join the International Retail Banking division in March. Other changes include the appointment of David Coxon, as deputy head of global finance; Slawomir Krupa, as deputy head of global finance, in addition to his role of CEO of Central and Eastern Europe, Middle East and Africa; Didier Valet, CEO of SG CIB; and Christophe Leblanc, chief operating officer.
Ben Hunt, the former head of derivatives and structured products wealth and investment management at Barclays in London, left the firm two weeks ago. According to his Linkedin profile, Hunt was made head of derivatives and structured products in March, having spent over a year as co-head of derivatives and structured products at Barclays Wealth. SRP understands that Hunt's responsibilities have been taken over by Lisa Abrey, director, derivatives & structured products at Barclays in London. Hunt joined Barclays Wealth as head of development, structured products in 2006. Prior to that, he was a director in investment product development at Barclays Private Bank from 1996, having started his career at the firm as a project manager.
Citigroup's co-head of equity derivatives sales, Manvir Nijhar, has left the US investment bank. Nijhar was registered as inactive on the Financial Services Authority's register of authorised persons as of 6 February. SRP.com understands that his co-head in the division, Dan Petherick, is now running the business as sole head. In 2010, Nijhar was named a Financial News Rising Star, having joined a year earlier from BNP Paribas to build an exotic derivatives business from scratch. Nijhar was later promoted to lead a team of 20-plus that more than doubled the sales volumes of all flow equity derivatives, both vanilla and exotic, for Citi.
Société Générale and the Royal Bank of Scotland (RBS) will not withdraw from the equity derivatives business, despite scaling back investment banking activities. Société Générale announced it is working on a plan to cut 1,580 jobs at its corporate and investment bank (CIB), which represents 10% of the unit's staff. The job losses will include 880 voluntary departures in France, where most of the division's employees are based, and 700 job cuts in other countries, a spokesman said. However, the same source told SRP that only capital-intensive business lines such as shipping finance, aircraft financing and real estate will be reorganised and that the bank has no plans to review its equity derivatives or exchange traded products businesses. The French bank said in a statement that like other European banks it has been "stepping up the structural adaptation of its corporate and investment banking activities in order to face a tougher economic and regulatory environment". The announcement follows a series of management shake-ups and headcount reduction announcements by French banks as reported by SRP, including Crédit Agricole which is cutting 1,750 jobs in investment banking, and BNP Paribas which announced plans to axe 1,400 staff at its corporate and investment bank. In addition, media reports suggesting that RBS could withdraw from equity derivatives have been questioned by a number of sources, which said the state-owned UK bank was unlikely to take such drastic action as the equity derivatives business has long-term commitments around live products. SRP understands that RBS's equity derivatives business is not being reviewed and that any adjustments will only affect the cash equity business.
Check back tomorrow - we'll be taking a look at the most popular editorial features of 2012.