Dahlman Rose & Co, an investment bank focusing on natural resource-linked companies, replaced its chief executive and fired more than 10 percent of its staff this week amid a broader Wall Street slowdown, its new CEO said.
Kim Fennebresque, a veteran investment banker who has been chief executive since June 2011, retired on Monday and was replaced by the firm’s equity sales and trading head Robert Meier. The New York-based firm, which trades stocks for institutional investors and raises capital for corporations, fired 15 people from its staff of about 130 as trading volumes and commissions continue to drop.
“This has been another rough year, and we still had a decent amount of fat on us,” Meier, who joined the company in December from Gleacher & Co (GLCH.O) to run equity sales and trading, said in an interview.
Dahlman Rose, whose revenue has plunged from some $60 million annually during its peak years, is struggling with high expenses due to guaranteed deals to sales staff and analysts, said a former executive who asked for anonymity.
Bigger banks are cutting back too. Nomura Holdings (8604.T) on Thursday said it was revamping its global equities business as part of an effort to trim $1 billion of costs, Deutsche Bank (DBKGn.DE) this week announced layoffs in stock trading operations and several smaller firms have shuttered their operations this year.
Read More: Reuters