J.P. Morgan Securities has made some sharp cuts to its U.S. and European asset-backed securities teams, according to officials familiar with the reductions. The cuts come as a result of widely publicized headcount reduction plans at the firm. Approximately 10 ABS bankers were let go in London, including two managing directors. In New York, 10 junior- and mid-level ABS bankers were let go. Included in the New York reduction was credit-card banker Giuseppe Pagano. Mike Dorfsman, a firm spokesman in New York, says J.P. Morgan "remains committed to the ABS business," and "we believe our ABS groups are now appropriately sized."
In London, the two managing directors let go were Paul Burke and Gillian Day. London ABS trading desks were rife with speculation that J.P. Morgan might be exiting the corporate securitization business--for example whole business securitizations or trade receivables. Dorfsman denied that there would be any changes in the ABS group's leadership. Tamara Adler and Jonathan Laredo currently run the group.