There are unconfirmed rumours that an entire group just left Pali Capital, the troubled boutique investment bank that is said to be on the verge of collapse.
Sources are hearing that the entire distressed debt team has left the firm. It couldn’t immediately be determined where they have gone. But there are indications that they may have gone to the UK stock brokerage firm, Collins Stewart.
Earlier today it was revealed the Collins Stewart had poached Chuck Howard from Pali. Howard was in charge of junk bond trading for Pali. The debt group at Collins is very, very small. Like 10 people small. So it is suspected Howard may have brought his team along.
Pali, which has reputation as a strong derivatives trading firm and started its distressed debt desk about six or seven years ago, had been in talks with Braver Stern Securities Corp, a mortgage boutique affiliated with former Bear Stearns Chief Financial Officer Sam Molinaro. That deal fell apart at the end of last week.
We haven’t been able to confirm which group left Pali, although it does appear that a mass defection has happened. Neither Pali or Collins responded to request for comment.
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