Peter A. Economou and a team of seven executives from the global securities finance area of State Street Corp.'s securities lending unit are leaving together to form an independent securities lending firm, industry sources said.
Marie McGehee, a State Street spokeswoman, confirmed by e-mail that Mr. Economou, executive vice president and global head of securities finance, “has decided to leave State Street to pursue startup opportunities within the industry.”
Ms. McGehee said in an interview that she did not have information about Mr. Economou's plans; Mr. Economou could not be reached by press time.
Nick Bonn was named as an interim replacement to head the global securities finance unit, Ms. McGhee said. Mr. Bonn is executive vice president and global head of sales for State Street's global markets and securities finance businesses.
Leaving with Mr. Economou are the following senior managing directors from the securities financing department: Paul F. Lynch, head of global trading; Suzanne N. Lee, head of North American account management, information delivery and marketing; Michael Landolfi, head of global operations; and Michael P. McAuley, chief product officer. Managing directors Larry Albaugh, Oberon Knapp and William Locke also are leaving with Mr. Economou.
Ms. McGehee declined to comment about replacements for the other seven departing employees.
“State Street has a deeply tenured team in place, virtually all of whom have been involved in building our leadership position in securities finance,” Ms. McGehee wrote in her e-mail.
Clients that use State Street's securities lending program started learning of the securities finance team departure from other sources on the morning of June 16 and said they had to call their State Street account representatives for more information.