Francis B. McKenna, who spent the last two years in charge of public finance at Glickenhaus & Co., has left the firm to join Citicorp Securities, sources with knowledge of the matter say.

McKenna could not be reached for comment yesterday, and it is unclear what role he will play at Citicorp.

However, sources say McKenna will serve as a senior public finance executive, possibly in charge of the firm's investment banking arena.

A Citicorp spokesman did not return a telephone call.

McKenna, who left Roosevelt & Cross in July 1992 to restart Glickenhaus' public finance department, is expected to begin work at Citicorp in early January.

Citicorp practically closed down its municipal finance business in 1990 after dismissing roughly half of its 70 employees. It currently focuses its municipal operations on derivative products. Citicorp served as senior manager on one transaction in 1994, a $50 million issue, according to Securities Data Co.

Meanwhile, Glickenhaus has replaced McKenna with John Marino, a senior vice president, according to a high-level executive at the firm.

Since April, Marino, former chairman of the New York State Democratic Party, had been on sabbatical to help in the unsuccessful reelection campaign of Gov. Mario Cuomo. Marino could not be reached for comment.

McKenna's departure comes as the municipal bond industry is experiencing one of its worst years on record. In response to the downturn in new issues and refundings, most firms have cut staff and in some cases suspended operations.

Last month, Glickenhaus said that it cut salaries and bonuses, which resulted in the exodus of at least 13 municipal finance employees.

Glickenhaus officials said the moves were necessary to remain competitive, but industry observers wonder how Glickenhaus hopes to survive with virtually half its staff gone.

Executives at Glickenhaus say they plan to replace those individuals and maintain a public finance effort with Marino in charge.

"The municipal bond department is starting aggressive moves to hire new people," one Glickenhaus executive said.

But new employees will have to work under a restructured compensation package instituted last month that reduced the salaries of sales representatives, traders, and bankers.

Under the new system, for example, sales representatives will no longer receive commissions. Instead, all employees will receive a bonus based on performance.

Glickenhaus, which specializes in negotiated bond business in the Northeast, has seen business drop significantly from 1993, according to Securities Data. The firm served as co-senior manager on $6.1 billion of negotiated issues this year compared with $9.1 billion in 1993.

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