The head of Deutsche Bank’s prime broking business in the U.S. has departed to return to his former employer, Goldman Sachs, in a senior equity sales role.
Marcelo Pizzimbono has left his role within Deutsche’s prime broking business, which has endured a tumultuous two years of cut backs, slumping revenues and senior personnel changes, to re-join Goldman Sachs.
Pizzimbono spent over ten years at Goldman Sachs, where he was a managing director in U.S. equities sales, before departing for Deutsche in 2010, initially as head of New York research sales. At Deutsche, he was promoted to head of prime brokerage for the Americas in January 2015, following the departure of Scott Carter, who in August of the same year joined AQR Capital Management as head of portfolio finance.
Also in 2015, Ashley Wilson and Greg Bunn were promoted to co-global heads of prime finance at Deutsche Bank. Meanwhile, Simon Kempton, its head of international prime brokerage in London, and Daniel Kaplan, who led its European prime finance division, were hired by Citigroup.
We understand that Pizzimbono will occupy a senior equities sales role at Goldman. A spokesperson at the bank declined to comment.
Deutsche has continued to struggle within its prime finance division since scaling back the business by cutting some of its smaller hedge fund clients loose in 2015, a move echoed by other banks who struggled to justify large, capital hungry prime broking businesses in an era when closer regulators are paying closer attention to their balance sheets.
In September last year, around 10 hedge funds reduced their positions with Deutsche’s prime broking business over fears about its financial position. It’s still feeling the impact of this – Deutsche said in its Q2 results that its equities business was down 28% year on year and that prime services revenues were “significantly lower reflecting lower margins and lower client balances”.
Goldman’s prime services division ranks joint second globally alongside J.P. Morgan, according to research firm Coalition. Morgan Stanley tops the rankings.
While most banks cut their prime broking businesses as they streamlined trading client lists after tougher capital requirements after the financial crisis, there are signs of life again in the U.S. job market. As we reported, CIBC Capital Markets, RBC Capital Markets and TD Securities – led by former Goldman Sachs partner David Santina – are all hiring on Wall Street.
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