Barclays Capital co-president Kvalheim resigns; latest senior investment banking executive ousted

Source: Exec Digital UK

Date :09/01/2008 09:42:44

After subprime mortgage losses, Grant Kvalheim resigned as co-president of the investment banking unit of UK bank Barclays on Tuesday, the latest casualty of the credit crunch.

Mr. Kvalheim’s departure comes after Barclays Group Plc unveiled net write-downs of £1.3 billion in November, mainly due to losses on subprime mortgage assets held in his division.

Barcap’s staff was informed of the changes in an internal memo yesterday.

“Succession race”

The resignation will leave Jerry del Missier as sole president and heir-apparent to Bob Diamond as chief executive. Mr del Missier and Mr. Kvalheim were co-presidents of the division and rivals for the job - number two beneath Mr. Diamond (pictured).

The latter appeared to have already lost the "race" in September when Mr. Diamond transferred credit product responsibilities to Mr del Missier.

Insiders said the joint position had only ever been temporary, describing it as "a succession race".

Mr. Kvalheim, who joined Barclays Capital from Deutsche Bank in 2001, will leave Barclays at the end of the current quarter.

January 09, 2008