All downhill at Lehmans? Not quite

Itís left the finances of some of Australiaís biggest local governments in poor shape, but Lehman Brothers is adamant the Grange Securities fiasco and the credit squeeze wonít force an early exit from the domestic market.

The global i-bank has grown its Australian staff by 50-60 over the past 12 months, according to Michelle Sprod, head of marketing at Lehmans. ìWe will continue to grow as the market dictates and opportunities arise,î she tells eFinancialCareers; ìThese hires have been across all areas of the business such as fixed income, equities, investment management, investment banking and corporate infrastructure.î

An industry insider, who preferred to remain anonymous, says the word on the street is that Lehmans is reassessing its position and taking a more conservative approach given current market conditions. ìWe aren't aware of any retrenchments, although they might have let some Grange people self-select out, to take up new opportunities.î

Bob Olivier, a director of recruiter Olivier Group, says taking on 50-60 people is a significant increase, considering the size of Lehmansí local business, which is said to be about 180-strong. ìI am also not surprised a few former Grange staff have left rather than been pushed.î

Olivier adds: ìMany banks are conscious about tightening their belt but donít want to let people go. When business picks up, you donít want to have lost your people capability. Itís hard to grow it again. Retention is critical and [the banks] donít want to let people go unless they must.î