Canadian Imperial Bank of Commerce is withdrawing from its U.S. credit business, according to two people with direct knowledge of the situation.
Nine people in sales, trading and research left the team in New York this week, with two others exiting in recent weeks, said one of the people, who asked not to be identified because the moves weren’t announced. The departures include Robert Cummings, who was hired to head the U.S. fixed-income sales team last year, and traders Mark Jicka and Rick Zuck.
The pullback comes as CIBC’s new Chief Executive Officer Victor Dodig, who was appointed last September, focuses the bank’s efforts to build out its U.S. wealth management business. Dodig has identified the U.S. as a “particularly attractive market” for asset management and private banking, where it’s been seeking to expand through acquisitions.
“We continue to have a strong business in New York focused on a range of capital markets trading, corporate banking and advisory solutions for our clients,” Tom Wallis, a spokesman for CIBC in Toronto, said in an e-mailed statement. He said the firm will trade U.S. high-yield bonds from Canada.
The Globe and Mail reported earlier Wednesday that the bank was moving some of its New York bond-trading operations to Canada.