Magazine article American Banker

SecPac Brokers Leave En Masse; All 16 on Government-Bond Repurchase Desk Quit

Magazine article American Banker

SecPac Brokers Leave En Masse; All 16 on Government-Bond Repurchase Desk Quit

Article excerpt

Betraying increased uncertainty about their parent's upcoming merger with BankAmerica Corp., all members of the government securities "repo" unit at Security Pacific Corp.'s New York-based processing subsidiary left the firm last week.

The exodus of the 16-person desk of government bond brokers represented the second wave of departures at the Sequor Group in one month.

The unit was part of the Wall Street services unit at Sequor, which also saw its senior software systems executive jump last week.

The departures occurred shortly after bonuses were announced. The repo desk will not be replaced, a Sequor spokesman said.

Merger Jitters

Sources familiar with Sequor's operations said executives are unhappy and uneasy about their future as a result of Security Pacific's upcoming merger with BankAmerica Corp. The San Francisco bank expects to absorb Los Angeles-based Security Pacific within a few months.

Insiders said that BankAmerica threatened to slash salaries, cut some bonuses, and excluded several veteran Sequor managers from making decisions about postmerger plans. Many of those officials have been with Sequor since it was formed in 1980, according to sources close to Sequor.

"They don't understand this business, and they don't have time to learn it," said one source. "They came in with a carrot and a stick, and hit us over the head before giving us the carrot."

The Sequor spokesman confirmed that the merger is causing uncertainty, but denied that BankAmerica is forcing people out the door. He said some employees were actively recruited by other firms.

"[BankAmerica] has to evaluate where Sequor fits," the spokesman said. "These questions cannot be answered in 24 hours."

Sale Is a Possibility

Though BankAmerica has no immediate plans to sell Sequor, he added, the option has not been ruled out. …

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