Asia Capital Markets Buildup Spurs BankBoston Exec to Quit

BankBoston Corp. has decided to expand its capital markets operations in Asia, prompting the departure of its senior executive in the region.

Until now, most of BankBoston's business in Asia has been directed toward trade finance and treasury-related operations.

But in an internal memo dated Monday, Bradford H. Warner, executive vice president in charge of global capital markets and head of the banking company's Asia and northern Latin America operations, said the focus will be broadened to include debt underwriting and trading, foreign exchange, and derivatives. The banking company is also reviewing its trade finance in the region with a view toward obtaining higher margins.

As part of the changes, Russ Magarity, who has headed BankBoston's Asia operations, is leaving the company. He had favored an even broader focus in Asia. He was succeeded by Ignacio Sosa, who retains his present post as head of emerging market sales, trading, and research.

The changes cap nearly a year of study by BankBoston about its direction in Asia. The bank has offices in Beijing, Shanghai, Hong Kong, Bombay, Jakarta, Tokyo, Seoul, Manila, and Taiwan and regional headquarters in Singapore.

The memo added that BankBoston will also reorganize its Asian infrastructure and identify new business opportunities stemming from the current financial turmoil in several Asian countries.

In his memo, Mr. Warner added that the company also hopes to take advantage of the current turmoil by recruiting staff in the region.

Mr. Sosa said in an interview that the continuing shift in Asia away from bank lending and toward bonds, as well as a growing demand for risk management, is among the main reasons for the company's decision to focus on capital markets. BankBoston, he added, also believes it can transplant expertise developed in Latin America and expand upon it in the Far East.

Other changes included: Francisco de la Hoz, responsible for client relationships and based in Singapore, has been named acting general manager for Asia, effective immediately; and James Borden, head of foreign exchange in Boston, takes charge of Asian foreign exchange from Ainsley Clark, who is also leaving the company.

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