NEW YORK, Nov 20 (IFR) - French bank BNP Paribas has cut eight people from its US high-yield trading desk, a source close to the situation said on Thursday.
The staff cuts include head of high-yield sales Kevin Cook and head high-yield trader Dowdell. A BNP Paribas spokesperson declined comment.
On Thursday the bank said it was reorganising its corporate and investment banking activities to fold securities services into the division and bring equities and fixed-income activities closer together.
The shake-up, which the bank said was to adapt to regulator changes and clients’ shifting needs, comes as the division tries to move on from a US sanctions violations case earlier this year that cost the bank nearly US$9bn, reported Reuters.
Corporate and institutional banking head Yann Gerardin told Reuters the move had not been prompted by the fine and was about improving the division’s focus on institutional clients. He also said no job cuts were planned as a result.
BNP Paribas Security Services, which includes activities like custodian services and transaction processing, will be brought into the renamed corporate and institutional banking division, as is common in the structure of most other big banks.
Additionally, the investment banking division’s equities and fixed-income businesses would be brought together under a new global markets structure, the bank said. (Reporting by Natalie Harrison; Editing by Shankar Ramakrishnan and Marc Carnegie)