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Commerzbank Cuts Hit Hard In U.S. Equity Biz

24 Feb 2003

Commerzbank Securities has let go four corporate equity derivatives marketers leaving it with no U.S. coverage. The sales team for high-net-worth individuals, meanwhile, has been halved to two, with hedge fund sales positions also being cut, according to an official familiar with the firm.

"While the cutbacks come as no surprise, the real question now is whether the firm is closing down certain businesses," said one Commerz watcher. Edgar Mitchell, spokesman, declined comment. Samuel Gottesman, head of derivatives and fixed income sales for the Americas in New York, did not return calls.

Commerzbank CEO Klaus-Peter Müller announced at the beginning of the month the firm's intention to cut 425 staffers from its global front-office investment banking operations after the firm posted a loss of EUR298 million (USD322.7 million).

24 Feb 2003