(August 14, 2012)-Stephen Smit, State Street’s head of Global Markets Europe and Investor Services UKMEA, has seen his role diminished significantly–a direct result, multiple sources say, of the firm’s transition management troubles.
Moving back into the lead role in London for the firm will be Peter O’Neil, who has been based in the Asian market in recent years. Karen Keenan, an executive vice president supporting strategic initiatives, will take the lead role for State Street Global Markets (SSGM).
Smit was responsible for investor services, securities finance, foreign exchange, equities, and fixed-income trading activities in the European market for the firm. There is no suggestion that Smit was party to any improper activities carried out by the transitions team.
As such, he oversaw Edward Pennings–the State Street employee who was dismissed in October 2011 following revelations, first reported by aiCIO, that he had misled clients regarding the pricing of fixed-income transitions. These clients included the Royal Mail and Sainsbury’s pension systems. State Street claims that all clients affected by Pennings’ actions have been reimbursed.
Smit will continue to oversee State Street Global Services’ business in EMEA.
When asked for comment, State Street said: “Consistent with our global growth objectives and to ensure we can capture all of the opportunities that broad market and regulatory change are driving we continue to deepen our management bench globally. Karen Keenan’s appointment to lead our Global Markets business in EMEA reflects these objectives and builds on other recent appointments.”
There have been other casualties as a result of the scandal. Boston-based Ross McLellan left the firm in October as a result of the revelations; Rick Boomgaardt, head of EMEA transition management, left the in firm earlier this year. In January 2012, former-JP Morgan transition management guru John Minderides was hired to lead State Street’s transition efforts in the United Kingdom.