The controversy surrounding the resignation of Tamara Adler, Deutsche Bank's well-respected former head of European asset-backed securities, has obscured another bizarre facet of the bank's reorganization following the death in December of global markets head Edson Mitchell.
Just weeks after Mitchell's lieutenant and global head of debt capital markets Grant Kvalheim resigned to join Barclays Capital, Deutsche appointed Jorge Calderon to replace him. It is a strange appointment. Calderon only joined the bank in March last year, as co-head of asset-backed securities in the US with his long-term colleague Phil Weingord. The two had built an exceptionally successful franchise at CSFB, and had replicated it well at Deutsche, taking the bank from nowhere to top five in US ABS underwriting within a year.
Stranger still is that Calderon and Weingord left CSFB because they were unhappy with plans to integrate all fixed-income products under one umbrella, which would have meant a loss of power in an institution built on political intrigue.