Kidder, Peabody Group said it will combine...

Kidder, Peabody Group said it will combine its government bonds and financial futures trading divisions. The merging of the two departments follows a substantial reshuffling at Kidder in May, when Ralph DeNunzio resigned after 20 years at Kidder’s helm to make way for replacement Silas Cathcart, a GE director for 15 years. Financial futures are contracts to buy or sell large amounts of Treasury bonds at a specified price and time in the future. The announcement came amid rumors in the credit markets that two cash bond traders were dismissed from Kidder Monday morning. Kidder declined to comment on the rumors, but market sources said at least two traderswere relieved of their duties.