KBW reports 3Q loss and cuts 80 jobs as CEO steps down
Keefe, Bruyette & Woods, an investment bank that advises financial firms, is cutting 80 positions after reporting a third-quarter loss due to a drop in bank and financial stocks. The company also said CEO John Duffy is stepping down and will be replaced by Thomas Michaud, who had been chief operating officer. Duffy, who was recently diagnosed with prostate cancer, said his prognosis is good, but he believes now is the right time to exit the company's top post. Duffy will continue serving KBW as vice chairman of the board. The company reported a third-quarter loss of $15.7 million, or 51 cents a share, compared to a loss of $3.8 million, or 11 cents a share, last year. Revenue for the three months ended Sept. 30 fell to $50.4 million from $89.6 million one year ago. Revenue from principal transactions fell to a negative $19.9 million from positive $16.7 million a year earlier. KBW's struggles in an uncertain market mirrors reports coming out of FBR & Co. (FBRC), another firm in the investment bank and market analysis segment. FBR plans to cut fixed costs by 35% to deal with volatile market conditions in banking and to preserve the company's current staffing levels. Write to Kerri Panchuk.