Steven Kantor, then head of investment banking for Cantor Fitzgerald, gathered his staff about a year ago for a holiday party in his 82nd-floor apartment in
. According to Businessweek/Bloomberg Kantor had stepped up his hiring in prior months, and the bankers discussed the
renewed push into underwriting and merger advice while drinking Avión, a
tequila in which Kantor personally invests, according to five guests. Within
about 10 weeks, more than half of his 50 bankers had been fired or reassigned.
In August, Kantor was gone, too—transferred to Cantor Commercial Real Estate, a
venture he helped create. Trump
CEO Howard Lutnick’s drive to turn Cantor Fitzgerald, one of the largest independent
brokerages, into a rival to Wall Street’s investment banks has been pocked with
dismissals and defections. Industry records show that 41 percent of the 158
traders and bankers whose hiring Cantor announced in news releases from 2009
through 2012 have left.
In interviews, 19 current and former Cantor Fitzgerald employees blamed the turnover on lack of investment and pressure to turn a profit immediately. Cantor executives dispute that characterization. “We have a very simple business philosophy,” says Anthony Orso, CEO of Cantor Commercial Real Estate. “People who don’t produce don’t stay with the firm….”
More? Check out http://www.businessweek.com/articles/2013-01-17/cantor-fitzgeralds-investment-banking-push-goes-awry