Bear Stearns plans to continue expanding and hiring staff in Europe despite its recent troubles, Financial News reports.
“Our commitment and the success we’ve had in Europe is key to our growth. We often get painted with the brush that we’re just a mortgage shop,” says chief financial officer Sam Molinaro. “The business is more diversified than people give us credit for.”
Molinaro said the US bank would continue to recruit for its three main businesses in London: fixed income, equities and prime brokerage. He said its top-ranked prime brokerage arm has not been hurt by the implosion of two hedge funds within Bear Stearns Asset Management, and the bank has not been forced to cut prices.
But mortgage origination will not fare so well. The bank cut 2 percent of staff in its Encore Credit unit last week. The jobs, located around the US, were in back office and processing.