Investment Bank Said Facing Large Number of Defections

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Defections become infectious.

Bloomberg reports that Gleacher & Co., the unprofitable investment bank suffering defections after it decided not to seek a merger, said 20 people left its credit-products division and that revenue will probably fall as it seeks replacements.

'While these departures are likely to have, at least in the short term, an adverse impact on the company’s revenues, the magnitude and duration of this impact cannot be estimated at this time', the New York-based firm said today in a regulatory filing.

The division provides analysis, sales and trading on high-yield and investment-grade credit securities, among other services, according to the filing. Gleacher will seek to replace departed employees from the unit’s 73 remaining members and through recruiting, it said.

In the meantime, Reuters reports that Barclays has recast its EMEA investment banking operation to create an integrated team for financial institutions.

The bank said on Wednesday that Richard Boath and Ben Davey would lead the Financial Institutions Group (FIG) which combines investment banking, Global Finance FIG and Financial Solutions teams in the region.

Gleacher Sees Revenue Crimped as Credit Unit Loses 20 People

Barclays rejigs FIG coverage, appoints new debt origination heads

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