Internet killed the Wall Street star
"At this point in my life and career I realize that this is an opportune time to make a change." So said Herb Allison as he resigned from Merrill last month. No-one believed it. Nor were they meant to.
It may be no more than a coincidence that Allison, who had been at the bank for 28 years and who as president and chief operating officer was the heir apparent to CEO David Komansky, quit just as Euromoney's analysis of the tumultuous year at the US investment bank hit the stands. But his demise is directly linked with Merrill's disastrous losses in fixed-income last year. He was the one who oversaw Merrill's response, cutting nearly 20% of the workforce in the fixed-income division.
Morale was low. "We knew there were problems with the structure of the division," says one former Merrill employee. "But when the shit finally hit the fan, executives overreacted, ran for the hills, and left us carrying the can. It left a very bitter taste in the mouth."