NEW YORK UBS UBJYL.PK, the third largest underwriter of municipal bonds, laid off 30 municipal bond bankers and support staff as part of its previously announced restructuring, company spokesman Doug Morris said on Friday.
Following these lay-offs, UBS will no longer have a municipal banking presence in its offices in Atlanta; Denver; Lansing, Michigan; and St. Petersburg, Florida, but that does not mean the bank is leaving the public finance business, Morris said.
"These changes have no impact on our core municipal business and ongoing strategy. UBS remains fully committed to the municipal securities market," the bank said in a statement.
UBS underwrote almost $27 billion of municipal bonds in the first nine months of the year, according to Thomson Financial. It ranked third behind Citigroup and Merrill Lynch & Co.
The layoffs in the municipal securities group came even as the market is on track to post record issuance this year. The layoffs indicate that the public finance sector will also be impacted by massive losses that banks suffered in securities linked to the U.S. subprime mortgage sector.
UBS in October announced it would cut 1,500 jobs in its capital markets and investment banking business after suffering $3.4 billion in losses on its fixed-income portfolio and elsewhere amid the global credit crunch.
The layoffs took place last week, Morris said.
Bank of America Corp. (BAC.N) in late October announced plans to lay off 3,000 people in corporate and investment banking unit and spokeswoman Louise Hennessy confirmed that the cuts will also include municipal bankers.
(Reporting by Anastasija Johnson, Editing by Chizu Nomiyama)
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