NEW YORK -- Manufacturers Hanover Corp. Thursday announced a major reorganization of its banking operations into five segments that it said will enable it to 'realize substantial management and operating economies.'
MHC also announced the apppointment of John R. Torell III as president of the corporation, effective July 1.
Torell will succeed Harry Taylor, who is taking early retirement. Torell will retain his title of president of Manufacturers Hanover Trust.
MHC said that all units of Manufacturers Hanover Trust, its major subsidiary and the nation's fourth-largest bank, and all non-bank subsidiaries will be realigned into five sectors, each to be headed by a Sector Executive Vice President, a newly created title.
Chairman John F. McGillicuddy said the decentralization of the bank's businesses is more appropriate for MHC's 'complex, nationwide, global' businesses 'with a growing diversity of earning and funding streams.'
The new sectors, each with its own support staff, and the executives who will head them:
Investment banking, Douglas E. Ebert; asset based financing, Albert R. Gamper; banking and international, Donald G. McCouch; corporate banking, Donald H. McCree; and retail banking, Edward D. Miller.
McGillicuddy said each sector 'will be managed and its results measures as a stand-alone business group.' He said the executive in charge of each group will 'have complete control over costs and complete accountability for performance.'
Commenting on Taylor's retirement, the chairman said 'for some time he has been telling us that after 43 years in banking he wished to take early retirement and to return to his own country (Britain).' McGillicuddy said Taylor will remain as a director of the bank and holding company until year-end.
Taylor has been actively involved in the efforts of major banks to restructure Latin American debt.