Bank of America Securities continued hemorrhaging equity derivatives staff last week with the resignation of four traders in New York and the departure of Nick Waltner, managing director and head of equity financial products in Tokyo. The move follows the recent departure of six professionals from the New York office to launch a hedge fund (DW, 3/4). Waltner, the four who resigned in New York and the six launching the hedge fund all reported directly or indirectly to Jonathan Sandelman, managing director and global head of equity financial products in New York. Sandelman did not return repeated calls.
Waltner cited a difference of opinion with management on how to run the Asian equity group as the reason for his departure. "BofA's equity financial products group is a highly focused model levering the bank's lending relationships, which works extremely well in the U.S. In Japan and Asia, it simply did not make as much sense." In the wake of his departure the Tokyo market has been abuzz with speculation that the desk will close, not least since it is now rudderless following the departure of Waltner's deputy, Fumio Nashiro, who recently joined Bear Stearns (DW, 3/8). Officials at BofA in Tokyo declined all comment.
In New York Tom Felgner, David Puritz and Michael Sass resigned about a week ago and Wayne Farel is finalizing his resignation, according to a company official. None of the four could be reached for comment. The equity derivatives customer trading team, which had about 10 professionals prior to the recent wave of departures, now has two traders, the official added.
One market official attributed the exodus in New York to the resignation last month of Van Nguyen, coo, global head of trading. "Van was really the glue holding that entire group together. These guys looked up to Van. They were their own group and Van was the leader," he said. Nguyen and five former BofA colleagues left to set up a market-neutral hedge fund. Neither Nguyen nor the five could be reached for comment.
Since Nguyen departed the traders have been reporting to J.P. LeCourt, who was appointed temporary head of the group. LeCourt and fellow trader Michael Lynn have been handling the trading duties. LeCourt and Lynn did not return calls.
