CIBC high yield research chief Mally out, replaced by Cornet

By Paul Deckelman

New York, Nov. 4 - Edward P. Mally, the veteran head of high yield research at CIBC World Markets Corp., has left that position and has been replaced by Jacques Cornet, Prospect News learned Monday.

Cornet confirmed that he had replaced Mally as high-yield research chief, but he declined to comment further on the personnel change other than saying that Mally had left "to pursue other interests."

Mally did not return a phone call seeking comment.

A spokesman for the company said that CIBC, as a general rule, does not comment on such personnel shifts, other than confirming that the change did take place.

The spokesman did acknowledge, however, that Mally's departure and replacement was "just part of those changes" recently announced by CIBC's corporate parent, Toronto-based Canadian Imperial Bank of Commerce, the third-largest Canadian bank.

The spokesman did not know whether there had been other personnel moves within the New York-based high-yield research group that Mally had headed or whether there had been any changes in other high yield-related areas, such as trading, sales or new-issues syndication.

Canadian Imperial Bank unveiled a sweeping package of cost-cutting initiatives on Oct. 21, including the elimination of a total 710 jobs at its investment banking and wealth management units. The job cuts include 240 positions, primarily in the U.S., which will be cut "as a result of the continued low level of business activity, particularly in investment banking."

It also said that operations and systems development support for CIBC World Markets and for its wealth management businesses will be "re-engineered," resulting in an additional reduction of approximately 470 positions. Accordingly, the company will take a pre-tax charge of approximately $80 million in the 2002 fourth quarter on those moves.

Among other measures the bank plans to take in response to lagging earnings and a sagging stock price is writing down C$160 million in collateralized high-yield debts, as well as substantially reducing or shutting down its unprofitable Amicus electronic banking operations in the U.S.

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