Wells Fargo & Co. is downsizing its European asset-backed securities business and merging it with its credit team, according to three people familiar with the matter.
The bank cut Kevin Corcoran, head of structured-credit sales in London, as well as salespeople Julie Rocheron and Ibrahim Dessouki, said the people, who asked not to be identified because the departures aren’t public. Krishna Shah, who traded asset-backed debt, may also leave the bank, the people said.
“Overall staffing for Wells Fargo Securities in London is up in 2015 and we remain committed to growing the business in Europe,” said Wells Fargo spokeswoman Elise Wilkinson, who declined to comment on individual employees. “We are constantly evaluating our business model to better serve our investing, issuing and advisory clients in the region.”
The cuts by the biggest U.S. home lender follow Barclays Plc’s decision last month to let go senior securitization staff in London as it reallocates capital to more profitable businesses. It’s become tougher to make money in Europe’s asset-backed debt market because of sluggish new sales and thin yield premiums caused by the European Central Bank’s purchase program.
Barclays pared back its asset-backed debt business in London, with Chris Carnell, its head of European ABS sales, and Stuart Calnan, its head of European ABS trading, among those let go, three people familiar with the matter said at the time. Christian Aufsatz, head of European ABS research, was also let go, the people said.
Corcoran joined Wells Fargo in 2005 and previously worked at Deutsche Bank AG, according to his registration with the U.K.’s Financial Conduct Authority. Shah, previously held roles at Societe Generale SA and Credit Agricole SA, the FCA register shows.
(An earlier version of this story corrected the timing of Barclays’ cuts in the fifth paragraph.)