Prudential Equity Out

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Prudential has confirmed today that it is shutting down its equity operations because the unit’s small size was not conducive to long-term success in the market. The division’s revenue for last year, $260 million, represented a negligible fraction of overall revenue, which was $32.49 billion (Prudential Equity Group’s profit before taxes was $34 million). The conglomerate had apparently been shopping the unit to potential buyers but no deals came through. The shuttering of the stock research and sales business means that about 420 people will lose their jobs. Severance for workers will reportedly come out to $75 million, with VP level staff receiving two months salary, period. Shares of Prudential Financial rose 43 cents to $101 in premarket trading Wednesday (after closing Tuesday at $100.57).
Earlier: Rumor Mill: Breaking Off A Piece Of The Rock
Prudential Shuts Equity Division [Houston Chronicle]

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