Bruce Whitfield
Stockbrokers and analysts have been lured away by a United States subsidiary of the world’s biggest banking group, which looks poised to set up shop in South Africa.
At least 20 stockbroking staff and analysts are leaving ING Barings South Africa to join US-based Citigroup subsidiary Salomon Smith Barney, which is due to start operations in this country.
Salomon Smith Barney is a global, full-service investment banking and securities brokerage firm with more than 12000 financial consultants across the US managing assets worth more than $800-billion.
There has been no official announcement from either ING Barings or Salomon Smith Barney, but staff at ING’s Johannesburg office say they have been lured by the prospect of working for a truly global player. ING recently scaled down its international and emerging market operations.
ING Barings South Africa chair Richard Savage insists the mass staff departure will not have a serious impact on the operation and that the company remains committed to staying in this country.
The firm became aware that Salomon Smith Barney was interested in the South African market a month ago when it made an offer to buy the ING Barings equity business. Savage says they refused and it’s understood that staff members were approached individually and offers were made on that basis.