D. Lee Hayes, a managing director at Lehman Brothers, will take on the additional responsibility of running the firm's municipal division, as Bruce Lakefield, also a managing director, shifts his attention to other areas, officials at the firm said yesterday.
Richard C. Bain, managing director and head of public finance, will report to Hayes. Previously, both Bain and Hayes reported to Lakefield.
In April, Lakefield, who is a member of Lehman's operating committee, became chairman of Panagora, the firm's London-based, asset management joint venture with Nippon Life.
Lakefield continues to head Lehman's multiple trading vehicles division. Known within the firm as "MTV," the division encompasses municipals, foreign exchange trading, and commodities.
"Lee will have day-to-day responsibility for public finance, trading, sales, underwriting, municipal derivatives and municipal research," a spokeswoman for the firm said. "He will be the one person taking the administrative burden away from Bruce."
The consolidation of reporting lines is consistent with the latest management trends on Wall Street. The elevation of a trader over a banker reminded some Lehman insiders of the titanic struggle in the 1980s between banking and trading when the firm was run by Lewis Glucksman.
Hayes joined the firm in 1983 after 12 years at Salomon Brother. Since 1986, he has served as the head of public finance markets for municipal products, encompassing the sales, trading, underwriting, and research area.
"We believe that by organizing under one concerted effort, we'll be even stronger going forward," Hayes said in a statement released yesterday.
Bain joined the firm in 1982 and has served as the head of public finance since 1991, following the retirement of Albert C. Bellas.