Italy's Unicredit SpA is restructuring its equities division as part of an investment banking review to focus on its core markets, Bloomberg reported on Friday, citing three unnamed sources.
The lender is reported to be cutting jobs in its equity brokerage, including sales and derivatives based in London and Milan and that the bank is considering forming joint ventures with other firms.
Roberto Lazzarotto, the global head of equity derivative sales at UniCredit, who is rumoured to be leaving the firm, declined to comment when reached by SRP. Another source at the bank close to the situation told SRP employees at Unicredit have been instructed not to comment, while a spokesperson at the bank in Milan said the story is only a rumour.
The news comes after UniCredit's CDS levels widened to a record high of $454,830 on Monday as fears over the exposure of the bank to a Greek default increased.
Unicredit's corporate and investment banking chief, Jean-Pierre Mustier, who joined from Société Générale back in February to succeed Sergio Ermotti, who stepped down in October 2010 after a management shakeup, is reviewing the unit as the company prepares a business plan to be presented by year-end. Part of the strategy, said the report, is to concentrate the equity business in Unicredit's four key markets of Germany, Italy, Poland and Austria.