Citigroup and Bank of America have cut loose senior structured product directors after both companies sustained massive third-quarter losses from the global financial crisis.

Michael Raynes, the head of structured credit at Citigroup, and his colleague, Nestor Dominguez, co-head of collateralised debt obligations (CDO) have both left the company.

At Bank of America (BoA), Michael Meyer, the head of investment grade bond trading, has resigned after joining the group in 2002 from UBS. Last month, Gene Taylor, head of global corporate and investment banking, left BoA as it announced it will cut 3,000 jobs.

The bank recently reported that profits in its corporate and investment banking division crashed by 93 per cent from $1.43 billion (£686.8 million) to just $100 million. In capital markets, a $298 million gain in the third quarter last year turned into a $717 million loss.

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Mr Raynes, a lawyer by training, was recruited by Citigroup last April to elevate the bank's ranking in providing complex financial products after it had fallen behind rivals such as JP Morgan and Mr Raynes' former employer, Deutsche Bank.

In the third quarter this year, Citigroup was forced to write down billions of dollars in assets that had been impacted by the US sub-prime mortgage crisis and the problems in the global liquidity market.

It wrote down $250 million in CDOs, $1 billion in mortgage-backed securities, $1.4 billion in leveraged loans and $600 million in other credit commitments.

At Citigroup, Thomas Maheras, co-head of investment banking, and Randy Barker, its co-head of fixed income, left last month following a shake-up instigated by chief executive, Chuck Prince.

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