David Puth, head of investment research, securities finance and trading activities at State Street, has left the firm.
A State Street spokesperson confirmed his departure but did not say why he was leaving the firm. Puth was appointed to the role, which ostensibly gave him responsibility for leading the State Street Global Markets business, in 2008.
Mike Rogers, currently executive vice president and head of global services Americas, will take over as head of State Street Global Markets in addition to his current responsibilities. Previously, he led the capital markets businesses of Investor Financial prior to its acquisition by State Street in 2007.
Puth was the top executive overseeing State Streets securities lending program in an era when the practice has seen increased scrutiny from clients and regulators.
State Street has faced several securities lending-related lawsuits in recent years by institutional investors who claim the firm breached its fiduciary duties with regard to their assets it held as custodian. A suit by law firm Fishman Haygood Phelps Walmsley Willis & Swanson was dismissed, while a suit by the Public School Retirement System of Missouri and of the Public Education Employee Retirement System of Missouri is believed to be ongoing. The Securities and Exchange Commission also apparently has investigated State Streets securities lending practices.
Puth also saw a significant portion of State Streets securities finance leadership leave the firm in 2009 to launch third-party agent lender Premier Global Securities Lending (PGSL). Craig Starble, former head of securities finance at State Street, launched the firm with a slew of former State Street colleagues, including securities finance executives Peter Economou, Paul Lynch, Michael Landolfi, Suzanne Lee, Michael McAuley, William Locke, Oberon Knapp and Larry Albaugh. State Street sued Starble, claiming he poached former staff, but the lawsuit was settled out of court and PGSL closed down.
(CG)