The 13-strong loan group at N.J.-based Summit Bancorp has been let go following the merger with FleetBoston Financial. One of the bankers who was let go said that the last day of April signaled the end of employment for the six primary, two par loan traders and back office support staff that comprised the team. "There was a degree of duplication in work, but primarily volumes in the loan market are down dramatically," said the source, declining to be named. Fleet, which closed its deal with Summit in March, has also reportedly let go about 20 people in the 80-strong loan department, he added, reflecting the state of the market. A Fleet spokesman could not provide comment by press time.
"Banks don't want to buy paper, they want to originate and almost all sectors are quiet," the source said. Except perhaps health care, which is peculiar in its non-cyclical nature, he noted. "It all comes down to the state of the economy and even though some banks are saying they are busy, it is not with new issuance, but with refinancing," he added. The source said Fleet is providing outplacement services to the employees, who are evaluating options. The names of the others on the desk or their potential destination could not be determined. Richard Carmichael, who was executive v.p., and senior managing director of Summit's capital markets and treasury division, and whose responsibility included loans, did not return calls.