Merrill Lynch's move last week to cut three veterans from its loan group has many players questioning the investment bank's commitment to the loan market. "There is no more loan business there; it's as simple as that," one rival banker said of the investment bank's decision to let go of Harold Siegel, Amy Miller andNeil Brisson. "These people are good, and it makes no sense to cut them and not everybody." Other rivals, however, see the move as a vital cost-cutting measure and believe Merrill is in it for the long run, albeit with a slimmed-down crew during the currently lean M&A period. A Merrill spokesman confirmed that Wednesday was the last day for Siegel, Miller and Brisson (LMW Web site, 10/23). He would not comment on Merrill's commitment to the syndicated loan market.
Looking to explain the departures in a cost-cutting context, one banker said Miller, a managing director in loan capital markets, was brought over from TD Securities to handle telecoms, media and technology. Siegel, also a managing director but working in loan syndications, had an undefined role, he noted, adding that Siegel was "clearly known as one of Jack Yang's guys." Yang, once co-head of leveraged finance, was let go in June (LMW, 6/17). There was speculation that Brisson, a par trader, would be replaced by John Servin, a bank loan trader who moved from Credit Lyonnais to work for Brisson two years ago. Miller, Siegel, Brisson and Servin could not be reached for comment.
Merrill's executive management has been trying to find ways to both cut costs and refocus the business, one banker explained. Jack Mann, global head of leveraged finance origination, was hired back from The Carlyle Group earlier this year, and Chris Birosak was brought back in June after being let go with 16 other members of the leveraged finance staff in November.
Even if Merrill is still committed to the loan business, bankers are being critical of the approach. One source asked, "Without origination and a par trader, how do you win and support new issuance?" Mann did not return calls for comment.