Regions Financial Corp., a regional bank based in Birmingham, Ala., has launched a derivatives group that will focus on over-the-counter fixed-income derivative products such as swaps, caps, floors and collars. The group will be based in Atlanta. As the initial step in this process, Regions has hired a derivatives marketer and a derivatives trader.Chris Grubbs, senior v.p., director of capital markets, said that an increase in demand for derivative products by mid-market corporate clients prompted Regions to set up its group.
Steve Russell, v.p., derivatives marketing to real estate clients at Wachovia Corp. in Atlanta, has joined Regions as senior v.p., derivatives marketing. Dan Meade, assistant v.p., trading specialist at Wachovia in Atlanta, has taken the position of v.p., derivatives trading at Regions. Grubbs would not comment on how many more derivatives marketers and traders he plans to hire. A risk manager on the West Coast noted that it would be tough for Regions to compete with larger firms that have more experience in the derivatives markets. Grubbs said Regions can compete because its smaller size will attract mid-market corporate clients that prefer working with a smaller bank.
