Cowen & Co. last week lost two municipal finance veterans from its New York City office.

Company executives yesterday confirmed that senior vice presidents Michael Shamosh and Jeffrey Teichman are no longer with the firm.

Shamosh, who handled institutional sales and research, resigned to join the Boston-based R.W. Corby & Co. In an interview, Shamosh, who has more than 15 years of municipal experience, said he will handle similar chores at Corby, and hold the title of managing director.

Teichman, Cowen's chief underwriter, was laid off, an executive with the firm said. Teichman's experience spans close to 25 years. He could not be reached for comment.

The departures at Cowen come as many firms in the municipal bond market, feeling the pinch of smaller trading profits and lower underwriting fees, look to trim costs through possible workforce and salary reductions.

Cowen joins a growing list of firms that have announced staff cuts, as the municipal market faces one of its most difficult years in decades.

Last week, Glickenhaus & Co., announced that it would reduce its municipal work force by about half, and that those who stay will receive smaller salaries and bonuses.

But Stephen Malfitano, a managing director at the regional bond firm, said Cowen has no plans to reduce its staff. He said Cowen is committed to expanding its public finance effort in the near future and plans to hire additional sales representatives.

"We clearly want to hire more salespeople, specifically institutional salespeople," Malfitano said. "We have no plans to abandon the municipal bond business."

Malfitano said Cowen has no plans to reduce the overall size of its municipal department, which remains profitable despite the difficult market conditions.

In terms of the two executives who are no longer with Cowen, Malfitano said that Shamosh refused a counteroffer made by the firm. As far as Teichman is concerned, Cowen simply couldn't afford his salary, Malfitano said.

Malfitano said the firm will replace Shamosh and Teichman. Cowen is also planning to hire someone to head a New York public finance effort, he said. Malfitano would not elaborate on the firm's hiring plans, but said that it has identified several areas of the business worthy of expansion.

"We continue to look at people selectively," Malfitano said.

At the moment, the firm has not hired a replacement for Shamosh, but Cowen will probably fill Teichman's slot by promoting Robert Perrego, an analyst. Malfitano said he will also handle some of the firm's underwriting duties.

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