A.B. "Buzzy" Krongard's resignation from Bankers Trust's board will not blunt banks' enthusiasm for acquiring securities firms, analysts said Wednesday.
Mr. Krongard, 61, chairman and chief executive officer of Alex. Brown Inc. before it was acquired by Bankers Trust New York Corp. last year, announced plans Tuesday to become a counselor to the director of the Central Intelligence Agency. A vice chairman of Bankers Trust's board, he is the first high-profile departure from a securities firm acquired by a bank.
"We should look at this case as a one-off basis," said Brad Ball, a bank equity analyst with Credit Suisse First Boston. According to Mr. Ball, Bankers Trust and Alex. Brown experienced a smooth transitions during their merger.
Several Alex. Brown clients said Mr. Krongard's departure will not impact the firm's relationships. John Crawford, chief financial officer of Phycor Inc., Nashville, said he deals with investment bankers beneath Mr. Krongard, who are all still in place.
Mr. Krongard's duties as head of Bankers Trust's private client services will be assumed by George J. Vojta, 61.
Mr. Vojta has "had very strong leadership and respect over many years," said T. Lee Pomeroy, an executive recruiter with Egon Zhender International. "He has been a very important personal leader and a link with both history and sensibility."