Morgan plans market return

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The Independent Online
Deutsche Morgan Grenfell is poised to re-enter the UK equity market eight years after it signalled "the death of theyuppie" and withdrew from the London market, dramatically sacking 450 staff.

DMG will activate its Stock Exchange membership next week as a precursor to full- scale trading in London equities. John Smith, head of UK equities, and Martin Rutherford, head of UK equity sales, joined DMG last week and plan to build a 75-strong team of analysts and salesmen.

The move back into equities is designed to coincide with the Deutsche Telekom float and will give DMG the opportunity to make a market in the shares of the German giant where DMG's parent, Deutsche Bank, is playing a pivotal role in the privatisation.

The building of a new equities business will be more gradual than the firm's last foray into the London market. Morgan Grenfell bought stockbroker Pember & Boyle and jobbers Pinchin Denny in the run up to Big Bang in 1986. However, the plans to build a significant equities business were undermined by the global stock market crash a year later.

By early 1988 the securities business was losing pounds 3m a month. When the decision was taken to close it completely in late 1988, the City was shocked by a move that symbolised the end of the greed culture which had developed during the Eighties.

DMG already has sizeable Continental presence in equities but it needs a London presence to allow it to provide a truly pan-European securities operation.