Dresdner Shutting Down New York DCM

Dresdner Kleinwort is effectively closing down its New York-based DCM business, save for a few sales and trading people. It is shifting resources closer to local markets, according to executives formerly with the firm. The change appears to reflect an internal decision to exit unprofitable businesses around the globe – including the US bond business – and reduce headcount in DCM. The German bank is heard to have pared down its eight person LatAm DCM team to four through layoffs. The remainder in New York will join local bankers and the practice for the entire region will be run out of Sao Paulo, according to people familiar with the matter. Carlos Rosso, a DCM originator based in Mexico, and Glenn Peebles, in charge of Brazil origination, will both continue at their posts, with the latter expected to preside over a Dresdner expansion in Brazil. DCM veteran Enrique Bustamante, head of LatAm corporate finance based in New York, was laid off. Rodrigo Gonzalez, a DCM originator also based in New York, is heard still with the team and may move to Sao Paulo. In August, Dresdner set up a LatAm M&A practice in Sao Paulo, with Gabriel Nores running the advisory effort and Eduardo Bertao, a Brazilian formerly based in London, focusing on the utilities sector. A Dresdner spokeswoman declined to comment.