We've been predicting for a while that Murray Roos would take over Citi's equities business. Now it seems we could be vindicated.
Derek Bandeen, Citi's mild-mannered, moderately ambitious ex-Morgan Stanley head of equities trading announced he was retiring from the bank on Friday. Short of hiring huge numbers of people in London after he was hired by Vikram Pandit in 2008, Bandeen didn't have a big impact - Citi ranked outside the top three in equities sales and trading last year, coming closer to seventh. "I'd like to be number one," Bandeen said this January, “But I don’t think we’re going there any time soon.”
Bandeen's exit leaves the way clearer for Roos, who was hired from Deutsche Bank last May. The former global co-head of prime finance and co-head of European equities at Deutsche Bank, Roos always looked too senior for his role as global head of sales for equities and prime-finance at Citi.
Citi declined to comment on Bandeen's departure and likely replacement. Bloomberg notes that Armando Diaz, former head of execution services at hedge fund Millennium Capital and head of cash equities trading at Citi, could also replace Bandeen, as could Daniel Keegan, head of equities at the bank in the U.S. In a possible sign of things to come, however, Bandeen's PA - who worked with him at Citi for seven years, was allocated to Roos last August...
If Roos does take over from Bandeen, Deutsche Bank might want to watch out. Citi wants to expand its equities sales and trading business this year, and it's already hired several big names from Deutsche since Roos arrived. They include Simon Kempton and Daniel Caplan as head of prime services and sales for Europe, Matt Passante as a director of hedge fund sales, and Adam Herman as global head of prime finance (Herman came from UBS but worked with Roos at Deutsche previously).
Oliver Rolfe, founder of London recruitment firm the Spartan Partnership, said there's "no story about Murray Roos hiring from Deutsche Bank for Citi". It's more that people want to leave Deutsche's equities business for wherever they can find new homes, said Rolfe: "Bonuses at Deutsche have been bad over the past five years and the feeling is that there’s more upside at Citi.”