Credit Agricole Indosuez has closed down its merchant banking operations and let go 13 bankers, according to Corporate Financing Week, an LMW sister publication. The firm merged earlier this month with Credit Lyonnais and the decision to exit the business was done because it was a localized business and did not fit with the company's global banking strategy, said Michael Walsh, general counsel for Credit Agricole Indosuez in the U.S. The bank plans to keep Indosuez's collateralized debt obligation business in place, said Walsh.
Credit Agricole was rumored to be shopping the business to other firms, including Guggenheim Partners and National Bank of Canada Financial. Adrian Duffy, a partner at Guggenheim declined to comment. Kym Anthony, a partner at NBC Financial did not return calls for comment. Walsh said he was not aware of any plans to sell the business. The bankers were told early last week to pack up and leave immediately, according to insiders. Calls to prior members of the group including Richard Jacobson, Thierry X. de Vergnes and Will Ziglar were not returned.