Merrill Lynch last week completed the removal of a layer of management closely associated with former global debt capital markets COO T.J. Limm, in a move widely interpreted as the firm's old guard reasserting its grip. In the latest reorganization Kevin Chattwell, managing director and head of the rates business for Europe, Middle East and Africa in London, was let go last week. Chattwell, who had worked with Limm at what is now Dresdner Kleinwort Wasserstein prior to joining Merrill two years ago, could not be reached. Richard Creswell, a Merrill spokesman in London, declined to comment.
Chattwell's departure follows a flood of recent resignations of bankers from Merrill closely associated with Limm. These include Kevin Krespi, head of debt for the Pacific Rim, James Witter, managing director in the corporate funding group, Guillaume Bonpun, head of corporate syndicate, George Handjinicolaou, managing director and global head of emerging market debt, and most recently Glenn Barnes, European head of structured credit. Merrill watchers believed Barnes' departure in June marked the end of the bloodletting, as he was seen as the last of the Limm loyalists. Indeed, several market officials told DW at the time they thought Chattwell's position was secure because he was not considered part of Limm's inner circle. Commenting on Chattwell's departure, a former Merrill manager said "When you are in a massacre, nobody notices if you shoot a few people on the side."
However, the positions of the last two prominent bankers associated with Limm at Merrill--Jan Pethick, chairman of client groups for Europe, Middle East and Africa, and Sharon Reed, chief technology officer for debt, are thought to be secure. Pethick is said to be safe because, as a senior salesman, he doesn't hold sway over a significant product fiefdom at the firm. Reed was promoted to her current position in August, and is therefore also seen as safe. Pethick declined comment. Reed could not be reached.
Culture Clash
Officials familiar with the firm agree that the group of bankers Limm brought over from Dresdner did not gel with Merrill, but disagree on the reasons. One insider said Limm's group were arrogant and treated the Merrill old guard with disdain. A Limm loyalist countered that Kelly Martin, former head of global debt markets and the Merrill executive responsible for hiring the team, failed to sell the group to the rest of the firm. Once Limm left, his former proteges were vunerable, he continued.
Bankers said the moves were directed by Harry Lengsfield, global debt markets coo and head of debt markets for EMEA in London. Lengsfield referred calls to Merrill's spokesman.
Chattwell has been replaced by a pair of Merrill veterans, David Gu, managing director and head of swaps and complex interest options for EMEA in London, and Chris Vogelgesang, managing director and global head of complex foreign exchange options in London.
