Commerzbank Securities plans to close its U.S. equity and credit derivatives desks by year-end. The U.S. foreign exchange and hedge fund management businesses, however, are likely to survive the purge, according to firm and market officials. Margarita Thiel, spokeswoman, declined comment.
The move follows a reshuffle in the top ranks of Commerzbank after Mehmet Dalman, head of the investment banking division in London, quit to start a hedge fund. Nicholas Teller, who has taken over the corporates and markets unit of the bank, broke the news of the cuts over a video conference call late last month. One official said after this round of lay offs is completed Teller will likely merge the remaining groups.
Officials were split over the reason for the cuts, with some saying it was to prepare the bank for a merger and others saying it is to position the firm as a German commercial banking power-house to take advantage of the long awaited German recovery.
Ted Madara, formerly head of the U.S. derivatives structuring desk, was let go recently as part of the New York shut down. Joe Mahfouz, regional head of equity derivatives, Sam Gottesman, head of fixed income and derivative distribution, and Robert Gay, a fixed income strategist, have also gone.
Commerz's equity derivatives desk still has six traders, all of whom are likely to be let go. The senior staff include Yoel Mayerseld, co-head of equity derivatives trading and responsible for indices, Ramy Saad, co-head of equity derivatives trading with responsibility for single stocks, and Steven Ahn, a senior index trader. They are all expected to be let go. The trading books are being transferred to London to be wound down.
