Merrill Lynch has reshuffled its structured finance operation by merging the global structured credit products, new product development and reinsurance groups into an expanded unit called global structured products. Steve Padovano, managing director, who had been head of the global structured credit products group, has been shifted out of that role. The timing for this move, which was finalized two weeks ago, appears related to efforts within the bank to streamline the structured finance business, says a person familiar with the situation.
Mac Taylor, managing director and former head of the new product development and reinsurance groups, has replaced Padovano, and will head the expanded unit. He will oversee collateralized debt obligations, portfolio credit derivatives, alternative investments and managed funds. Prior to the reorganization, those products overlapped between the two groups headed by Taylor and Padovano. Calls to Padovano at his office were not returned. Michael Duvally, a spokesman at Merrill Lynch, says, "We are looking for another senior role for Steve. Steve is still with us." He declined to comment on the restructuring. Taylor declined to comment.
A person familiar with the situation adds that Padovano, who used to head global derivatives, was shifted to head of global structured credit products last September.
An insider at Merrill Lynch says the restructuring marks the ascension of Taylor within the firm in a battle to head the new centralized unit. He adds that both Padovano and Taylor were responsible for structuring similar types of products. The restructuring was also done, he says, to make the structured finance business more efficient, eliminating product overlap.