BASIS POINT-Bank of America to shut Asia-Pac debt cap biz
HONG KONG, Jan 31 (Reuters Basis Point) - Bank of America (BAC.N) is shutting down its debt capital markets (DCM) business in Asia Pacific, banking sources said.
The bank will no longer originate, structure or arrange DCM deals, including bonds, loans and structured products, in the region.
As part of the move, Bank of America on January 25 fired about 15 DCM staff, including all its originators and structurers.
An official spokesman based in Singapore declined comment.
The cut leaves just two DCM executives in Asia Pacific, Joyce Ng and Ashish Sharma, both based in Hong Kong, who will handle distribution and will be responsible for reducing the bank's existing DCM book, the sources said.
The sackings were part of a 50-60 person bank-wide downsizing in the region. A second phase targeting support staff is expected in the next few months. Overall, the bank plans to significantly downsize its business in Australia, China, India, South Korea and Taiwan. The reductions will be less severe in the regional financing hubs of Hong Kong, Japan and Singapore, where the bank could need staff to service the fundraising needs of its US customers.
"On top of the subprime crisis, the acquisitions of LaSalle Bank Corp and Countrywide Financial Corp have put a lot of strain on the bank's financial resources," explained a senior Bank of America banker. "Because of this the bank has decided to redirect resources from Asia Pacific, and to a lesser extent Europe, back to the US."
