J.P. Morgan Securities reorganized its structured credit operation in New York following last Wednesday's resignation of group chief Romita Shetty (www.bondweek.com), according to BW sister publication Derivatives Week. Officials familiar with the firm's plans said Maleyne Syracuse, managing director, client management, will take over Shetty's responsibilities in origination and structuring, while Andrew Palmer, managing director, North American credit derivatives, will head the distribution effort. Syracuse and Palmer both report into Andrew Feldstein, managing director and head of credit portfolio management. A rival credit derivatives head said it was surprising that Syracuse would move into origination given her background in sales. Syracuse, Palmer and Feldstein did not return calls by press time last Thursday.
The timing of Shetty's resignation came as a surprise to many in the industry, with credit players noting that it is unusual for staffers to resign during the bonus season. Michael Dorfsman, spokesman in New York, said Shetty wanted to broaden her experience and is considering a variety of options within the firm. Officials familiar with Shetty's plans said she is evaluating new employment possibilities both in and outside of J.P. Morgan. Shetty declined comment.
Other changes being made as result of the resignation will include a shift in focus by Jeff Herlyn, managing director, managed CDO structures, away from origination to concentrate more on distribution, said industry officials. Herlyn will report to Palmer. Michael Rosenberg, v.p., managed CDO structures, will continue to focus on origination, reporting to Syracuse. Dorfsman said while both Herlyn and Rosenberg will have senior positions in the new structure, the exact line-up and reporting lines have not yet been decided. Herlyn and Rosenberg didn't return calls.