D.E. Shaw & Co. Announces Firmwide Restructuring.NEW YORK--(BUSINESS WIRE)--December 2, 1998--D.E. Shaw & Co., L.P. today announced a firmwide restructuring involving the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of several business units, selective staff reductions, and an increased focus on the continued growth of certain core business and investment activities. The firm's reorganization was prompted in part by previously announced changes in its relationship with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , which merged with NationsBank on September 30 and thus acquired certain functional capabilities that overlap with those it had previously obtained through a strategic alliance conducted within D.E. Shaw Securities Trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the , L.P. Although the firm's current agreement with Bank of America remains in force through the end of the year 2000, certain (though not all) customer businesses that have previously been conducted within D.E. Shaw Securities Trading, L.P. are to be moved outside of the alliance structure in a staged manner over the coming year. Elements of the reorganization include: -- the sale of certain assets of the firm's third market market-making unit to Trimark Securities, Inc. (the third market subsidiary of Knight/Trimark Group, Inc.), and the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of its own third market activities as of December 31, 1998 -- the pursuit of a buyer or merger partner for FarSight Financial Services, L.P., which provides online brokerage and other Internet-based personal financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , and of D.E. Shaw Financial Technology, L.P., which develops Internet technology solutions for retail brokerage firms and other financial institutions -- the (previously announced) retention of Wasserstein Perella & Co. to seek a buyer or financial partner for the firm's Financial Products group, which includes a global equity-linked securities business that is currently one of the world's leading market-makers in convertible bonds and other equity-related instruments, along with a highly successful and rapidly growing over-the-counter equity derivatives business -- staff reductions totaling 264 employees (or just under 25 percent of the total staff of the D.E. Shaw group of companies), reducing firmwide headcount from 1,069 to 805 employees (to a level that is still more than 60 percent higher than in March 1997, when the firm entered into its strategic alliance with Bank of America) -- the closing of the firm's California office (while retaining offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Boston, London, Tokyo, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , and Hyderabad) -- an increasing focus on the firm's quantitative proprietary trading activities (with special emphasis on its equity and equity-linked strategies), and on its (highly successful and rapidly growing) technology-based U.S. equity trading In finance, equity trading is the buying and selling of company stock shares. Shares in large publicly-traded companies are bought and sold through one of the major stock exchanges, such as the New York Stock Exchange, London Stock Exchange or Tokyo Stock Exchange, which serve as activities on behalf of institutional customers Background: D.E. Shaw & Co. is a specialized global securities firm whose activities center on various aspects of the intersection between technology and finance. The firm was founded in 1988, and is headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . |
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