Barclays moved to calm the speculation surrounding the surprise departure last week of Edward Cahill, a senior director in credit derivatives, saying that it had not put any pressure on him to resign and that it had met him this week to ensure an orderly transition of responsibilities.
Mr Cahill has hired Mischon de Reya, the London law firm, to advise him. He could not be reached for comment.
Mr Cahill left his position as European head of collateralised debt obligations (CDOs) at Barclays Capital, the UK lender’s investment bank, amid market concern about the value of the type of sophisticated credit vehicles that his team structured. He immediately went on holiday.
“Edward was not asked to resign, he was not fired. There was no disciplinary action and there is none pending,” said Rich Ricci, chief operating officer of Barclays Capital.
“He is working out his 90 days’ notice. We are transitioning his desk in an orderly way and we have had a couple of meetings with him in the last couple of days as part of that process.”
Mr Ricci added that “there had been no red flags or compliance issues” in the run-up to Mr Cahill’s departure.