DeNunzio Quits After 34 Years at Kidder
Ralph DeNunzio resigned Tuesday as chairman of Kidder, Peabody Group Inc., ending a three-decade tenure with the venerable investment house that was tainted by Wall Street’s insider trading scandal.
The resignation completed DeNunzio’s gradual disengagement from the key leadership positions at Kidder, which began five months ago when its parent, General Electric Co., assumed direct control of the company as part of a management shake-up stemming from the scandal.
“The transition to our new management team is essentially complete, and I desire to pursue some personal interests and, therefore, the timing seems appropriate for both Kidder and myself,” DeNunzio said in a press statement.
Silas S. Cathcart, a GE director who earlier replaced DeNunzio as chief executive, will also assume the position of chairman.
Kidder agreed in June to pay the Securities and Exchange Commission $25.3 million to settle charges of insider trading, the largest settlement ever made by a brokerage.
The charges were related to the activities of Martin A. Siegel, a former Kidder executive who pleaded guilty in February to participating in insider trading with speculator Ivan Boesky.
Although DeNunzio was not charged with any wrongdoing, he was considered at least partly responsible for management lapses and weaknesses at the firm.
DeNunzio was with Kidder for more than 34 years and for the past 20 years had been its principal executive officer.
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