Another Huge Name Leaves Citadel As About A Dozen Traders Are Fired

James Boyle

The season of layoffs hit Citadel this week as James Boyle left Citadel Securities.The firm also has or is in the process of firing about a dozen employees in sales and trading.

We heard this might be happened a couple of weeks ago, and we suspected the rumour was true for a few reasons.

At its launch in 2008, Citadel Securities received glowing reviews from the business press heralding Citadel Securities the next big thing in investment banking.

Citadel Securities will be “one of the great sales and trading operations” within five years, he said in a September 2009 interview.

His efforts have been plagued with mass turnovers at the top levels of the business’ executive management (Robert D’Souza, the president, quit after just a year. Now that Doyle’s gone, a total of 5 top execs have left in the past couple of years), and the impossibility of starting an i-bank that can compete with firms like Goldman Sachs from scratch.

Like Dushyant Shahrawat, a senior research director at TowerGroup, a financial-services research firm, told Bloomberg in May:

“While Citadel has a tremendous name as a market-maker and hedge-fund manager, they are a relatively unknown brand in the investment-banking world.”

But even after all the turnover, Griffin stayed tough and pledged to pursue the investment bank.

Now, these are the guys at the top:

  • Chris Boas (head of credit markets)
  • James Boyle (co-head of equity derivative trading)
  • Andrew Kolinsky (the President of Citadel execution services)
  • Brad Kurtzman (co-head of equity derivative trading)
  • Brian Maier (co-head of investment banking)
  • Carl Mayer (head of leverage business)
  • Paul Pepe (head of equity capital markets)
  • Craig Stine (co-head of investment banking)
  • Brennan Warble (head of institutional sales)

Brad Kurtzman is taking over equity trading now that Boyle is gone. So some of the rumours were true, as they usually are.

A refresher of how this story developed:

A couple of weeks ago, a tipster told us this:

The fixed income group and in particular the distressed group got hit with a bunch of losses connected to some high yield loans.

The layoffs will be in the next few days, and they are connected to a wider dismantling of Griffin’s Citadel Securities.

A Citadel media rep denied our story. And the next day, Dow Jones reported that someone familiar with the matter at Citadel said, “there could be staffing changes as the firm is undertaking its annual business review.”

Then, on Monday, we got an email: 

Citadel tip was right. Massive layoffs hitting this morning. Guys in their equity derivatives unit got the axe.

But apparently that was just an exaggeration of the news that one person (Boyle?) got fired.

Now it seems, Boyle and about twelve employees in sales and trading are gone, as Citadel joins a number of Wall Street firms that have been laying people off lately.

Click here to see which firms have had layoffs recently >