SIFMA Lays Off 40 Amid Turmoil; Toll Includes Muni Market Lobbyist

WASHINGTON - Wall Street's leading industry group this week cut its staff by about 20%, or roughly 40 people, including a lobbyist who worked on municipal bond issues, in response to the financial crisis that has thinned its membership and cut into its revenues.

Sources said that the cuts to the already-demoralized staff of the Securities Industry and Financial Markets Association included Christina Martin, who ran their communications department; in-house counsel Alan Sorcher; and Amy Mathis, who ran the group's political action committee.

In addition, SIFMA laid off Jill Hershey, a Republican lobbyist who worked on municipal bond and other tax issues. Hershey was the last remaining lobbyist who had worked at The Bond Market Association, which merged with the Securities Industry Association in late 2006 to form SIFMA.

Sources said that the primary lobbyist for muni issues is Shahira Knight, who was hired shortly after the SIA/TBMA merger and worked as an adviser to former Rep. Bill Thomas , R-Calif., while he was chairman of the House Ways and Means committee.

SIFMA declined to discuss the specifics of the layoffs, but released a brief statement: "Our member firms are facing challenges, and those challenges are reflected across the industry. Tough economic times require hard choices and today, SIFMA was required to restructure. We are sorry to see the departure of so many of our hardworking and dedicated employees under these unfortunate circumstances."

Sources said that SIFMA lost some notable members recently, among them large firms that went out of business, like Bear, Stearns & Co. and Lehman Brothers. They also lost regional firms like George K. Baum & Co. and FTN Financial, the later of which was a founding member of the upstart Regional Bond Dealers Association, a group formed earlier this year by two SIFMA alumni - Michael Decker and Michael Nicholas.

The cuts do not include Leslie Norwood, who remains at SIFMA and essentially staffs its municipal securities division single-handedly. The group made further cuts to its research department, which has been slowly gutted through departures, firings or layoffs, and also trimmed positions in its state government affairs and conferences departments, while eliminating its membership staff.

One source said that while membership had flagged, the biggest problem at SIFMA is attributable to the merger and the fact that SIA and TBMA never fully integrated.

"The biggest issue at SIFMA is how to steer the ship which is dominated by equity and private client folks on the staff," the source said. "How to keep all demographics happy - retail fixed-income, institutional fixed-income, private client, institutional equity, asset management. There is no focus or identity."

For reprint and licensing requests for this article, click here.
Bankruptcy
MORE FROM BOND BUYER