Banc of America Securities plans to merge its equity cash and derivatives departments to form a global equities division and is looking to hire a head of the department. "Once we fill the position, equity financial products, which covers derivatives and convertibles, and the cash equities groups in both the U.K. and the U.S., will fall under one umbrella," said spokesman John Roehm. He declined comment on the reason for the restructuring.
John Skeen, who was appointed head of U.S. equities at the end of March, is filling the top position on an interim basis Roehm continued. Skeen, based in San Francisco, was previously the firm's cio. Roehm said the merger of the two groups would not impact the role of Jonathan Sandelman, managing director and global head of equity financial products in New York. Two officials said Sandelman was offered the top job but turned it down, but Roehm declined comment on that point. Calls to Sandelman and Skeen were referred to Roehm.
Equity professionals at rival firms speculated that the decision to combine equity cash and derivatives under a unified management structure is an attempt by BofA to stem the flow of marketers and traders who have recently left the firm. "This may be a move to stop the bleeding. Maybe the bank feels it needs someone to keep these groups in check before more people head for the door," said one market official. Roehm denied allegations that it combined the groups to stop the hemorrhaging of staff, but failed to provide an alternative reason.
In March, BofA saw the departure of 10 equity derivatives professionals from its trading and marketing teams in New York, (DW, 3/17). Their departure preceded the exit of Scott Kovalik, head of U.S. equities, Mark Lehmann, head of equity research; Kevin Chessen, head of listed trading and Cordy Snyder, head of over-the-counter trading. Kovalik and Sandelman both reported to Ed Brown, global president of corporate and investment banking. Brown is out of the office until May 8 and could not be reached for comment.
