Goldman Shakes Up Its Trading Executives -- WSJ
September 08 2016 - 3:03AM
Dow Jones News
By Liz Hoffman
Goldman Sachs Group Inc. on Wednesday announced a series of
changes to the executives running its all-important bond-trading
business, which has struggled with calmer markets and reduced
client trading.
The retirement of Tom Cornacchia, co-head of global sales for
fixed-income, currencies and commodities, or FICC, sparked a
reshuffling of officials throughout the trading arm, according to
internal firm memos.
Mr. Cornacchia will be succeeded by John Willian, who will join
current global FICC sales co-head Jim Esposito. Mr. Willian is
currently global head of prime services, which includes prime
brokerage, the business of selling stocks and services to hedge
funds. While prime brokerage is typically geared toward stock
trading, Mr. Willian's background is in debt, having held posts in
Goldman's municipal-bond and mortgage departments.
Mr. Cornacchia's retirement opened the door for a shuffling on a
scale that rarely happens at Goldman. Some bankers and traders have
grumbled in recent years that a lack of movement at the top --
Chief Executive Lloyd Blankfein and President Gary Cohn have long
been in their positions, and leadership of the major business units
has been relatively stable -- has created a bottleneck of talent
further down. The moves announced Wednesday represent one of the
biggest one-time talent shifts inside the trading business in
years.
Among the changes, Mr. Willian's spot will be filled by Jeff
Nedelman, who currently is head of Americas equities sales.
Filling Mr. Nedelman's role, Jack Sebastian and Tony
Pasquariello will become joint heads of U.S. equities sales. Mr.
Sebastian currently manages both equity and fixed-income trading
for Goldman's Boston office. Mr. Pasquariello, a younger partner as
a member of the 2012 class, heads North American equity derivative
sales and U.S. equities franchise sales.
The changes were announced by Isabelle Ealet, Pablo Salame and
Ashok Varadhan, global co-heads of the firm's securities
division.
Separately, Goldman's co-head of global equities trading, Peter
Selman plans to leave the bank, according to people familiar with
the matter. Mr. Selman, a partner since 2006, has been with Goldman
more than 20 years. His global responsibilities include
stock-trading execution.
Mr. Selman declined to comment Wednesday.
The shifts follow challenging times for the unit. Global trading
volumes have shrunk since the crisis, with FICC -- Wall Street's
profit center for years -- hit particularly hard. While rivals have
pared or pivoted, Goldman has largely stayed the course, betting
that revenues will rebound or that it will be able to capture a
sufficiently large share of what remains.
Goldman has cut more than 5% of its trading staff this year as
it looks to rein in costs and right-size for a smaller fee pie.
Goldman often prunes the executive ranks ahead of announcing
every two years a new class of partners, which it will do this
fall. J. Ronald Morgan, head of execution services, retired earlier
this year, and two fixed-income trading partners, Peeyush Mishra
and Carsten Schwarting, have also left in recent months.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
September 08, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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