Bank of America Corp. trading executives David Moore and David Hartney departed as the firm prepares to eliminate fixed-income and equities jobs worldwide, according to people with knowledge of the moves.
Moore, chief of North America rates trading, and Hartney, global head of futures execution, left this week, said the people, who asked not to be identified discussing personnel matters. The cuts next week probably will be more severe for fixed-income desks than for equities, two people said.
Wall Street banks are paring costs as record low market volatility curbs trading volumes and revenue, contributing to the worst first half in trading since the financial crisis. Calm markets and low client demand may continue through mid-2015, JPMorgan Chase & Co. (JPM) Chief Financial Officer Marianne Lake said yesterday during an investor presentation in New York.
"Firms typically cut this time of year because they're doing business planning for next year and making major decisions about which businesses to grow and cut," said Jeanne Branthover, managing partner at Boyden Global Executive Search in New York. "If organizations are top-heavy, they'll look at senior people who are making a lot of money."
Trading firms are eliminating jobs after over-hiring in 2012 and keeping staffing levels elevated in anticipation of a rebound, she said.
Moore joined Bank of America in 2011 after more than two decades at Morgan Stanley (MS), where he ran the U.S. and Europe interest-rates unit. Hartney started at Bank of America in 2012 after almost 18 years at JPMorgan.
Moore and Hartney didn't return phone and e-mail messages seeking comment on their departures. Zia Ahmed, a spokesman for Charlotte, North Carolina-based Bank of America, declined to comment on personnel changes.
Trading results were "reasonable" in July and slowed in August, Chief Financial Officer Bruce Thompson said today at financial-services conference in New York.
Last week, Bank of America hired Deutsche Bank AG trader Sidney Lebental for the firm's rates desk, people with knowledge of the move said. Lebental was the German bank's top revenue-producing Treasuries trader, the people said.