Oct. 27 (Bloomberg) -- KBW Inc., a boutique that advises financial institutions, appointed Thomas Michaud chief executive officer and will fire employees after the company lost money for the second consecutive quarter.
Michaud, 47, who had been chief operating officer, replaces John Duffy, 62, who will stay with KBW as vice chairman, the New York-based bank said today in a statement. The company named Andrew Senchak, 64, chairman of the board.
KBW said it plans to cut about 80 jobs, some of which were already eliminated, after a loss of $15.7 million, or 51 cents per share, in the third quarter. That compared with a profit of $3.8 million, or 11 cents, in the same period a year earlier. The average estimate of five analysts surveyed by Bloomberg was for profit of about 1 cent.
“Results were disappointing and were directly impacted by the significant decline in bank and financial stocks during the period,” Michaud said in the statement. “Although our investment-banking M&A and advisory fees rose, activity continues to be muted, generally, as concerns about asset values continue.”
KBW has lost 49 percent this year in New York trading. The shares rose 1.7 percent to $14.28 yesterday.
--Editors: Steve Dickson, Gregory Mott
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