Bankers Trust New York Corp. reportedly is paring back its Asian operations and may lay off some of its 1,500 staff members in the region.
Newswire reports of a restructuring sent shares down $3.3125 to $107.5625. "The implication," said Scott Edgar, director of research at Sife Trust Fund, "is that there's some problem" and that "they're trying to limit their exposure."
Analysts said the $122 billion-asset bank has been planning a reorganization of its trading operations, and had already taken a $27 million fourth-quarter after-tax charge.
Analysts described the bank's business in the region as primarily trading operations, with a small corporate finance and advisory presence.
Raphael Soifer, an analyst at Brown Brothers Harriman & Co., said the bank planned to consolidate some trading operations into an existing facility in Singapore, and that the move was not related to the currency crisis that has impacted the earnings of foreign banks doing business in southeast Asia.
A spokeswoman for Bankers Trust would not comment.