BofA Said Close to Rescinding Bond Chief Foresti’s OfferHugh Son
Bank of America Corp. is close to rescinding its job offer to Michele Foresti, the Deutsche Bank AG executive hired in March to oversee European bond trading, people with knowledge of the plans said.
Foresti, 45, has been in limbo for the past four months, unable to officially start because his former employer is withholding regulatory clearance with the U.K. Financial Conduct Authority, said the people, who requested anonymity discussing hiring matters. Bank of America may pull the offer, which was subject to Foresti being licensed by regulators, as early as this week, the people said.
Banks have been forced to push back start dates and reverse job offers for new hires amid tougher background checks. The FCA, the U.K.’s markets watchdog, must approve executives who have “significant influence” over a firm’s regulated activities, including trading.
There are two to three executives working for Bank of America in New York being discussed as candidates to take over Foresti’s role as head of fixed-income, currencies and commodities trading in the Europe, Middle East and Africa region for the Charlotte, North Carolina-based company, according to the people.
While Foresti, who is based in London, has told colleagues that he’s been negotiating with Deutsche Bank and is close to resolving the matter, he may run out of time, the people said. Foresti declined to comment when reached by telephone.
John McIvor, a spokesman for Bank of America, declined to comment, as did the FCA’s David Cross and Nick Bone of Frankfurt-based Deutsche Bank.
Foresti, who got his MBA from the Massachusetts Institute of Technology, spent 18 years at Deutsche Bank and rose to head of rates and European credit-flow trading. He was originally scheduled to start in June at Bank of America, the second-biggest U.S. bank by assets behind JPMorgan Chase & Co.
Bond traders in London are still reporting to Bernard Mensah, Foresti’s predecessor, the people said. Mensah, 46, was given responsibility for a new emerging markets fixed-income unit in March.