Chemical Securities Inc., which recently added to its public finance unit while other firms are cutting back, is also planning to hire sales staff in the coming weeks, municipal executives at the firm said.
With trading profits off and municipal issuance at its lowest point since 1990, both large and small firms have been forced to make layoffs.
In addition, Chemical's banking affiliate on Thrusday announced that it would eliminate 3,700 jobs, or about 9% of its work force. Municipal executives said the bank's action is unrelated to the securities firm.
Municipal executives said they are looking for three sales representatives to handle orders from institutional investors. The firm is also looking to bolster its public finance area.
"We're trying to build a presence in the Northeast and New York State," said William J. Jester, managing director and head of Chemical's dealer operations.
Despite its optimistic employment outlook, the firm has made only one real hire. Late last week, Chemical named municipal investment banker Frances A. Walton as vice president in its public finance department, said Clarence Otis, the department's manager.
Walton was one of four public finance employees laid off from Lebenthal & Co. in late September, after the company decided to cut costs by eliminating its public finance business.
Walton will seek out municipal bond business in the Northeast, including local issuers in these areas. She will report to managing director Paul L. Atanasio, one of four municipal finance executives named to Governorelect George Pataki's transition team late last month.
Before joining Lebenthal, Walton worked in the cash and debt management departments of the Port Authority of New York and New Jersey.
Chemical Securities ranks 22 out of the nation's top 25 bond underwriters, according to Securities Data Co. Chemical sold $810.2 million in competitive and negotiated issues as of September, the latest date figures are available.
