Bankers Trust Corp. is eliminating sales and trading activities in Mexico City and moving that operation to New York, sources at the banking company have confirmed.
The sources confirmed a Reuters report Friday that the bank had fired 30 to 40 employees from its brokerage and foreign exchange units. The report added that a limited number of people would be moved to New York to reduce costs.
The move will affect sales and trading in debt, equity, and foreign exchange. Investment banking and processing services in Mexico, such as cash management and custody operations, will not be affected, sources said.
Bankers Trust is one of the first U.S. banking companies to pare staff overseas in the wake of a downturn in financial markets in Asia, Latin America, and Russia. Bankers said more such cutbacks are expected, especially in capital market activities.