Nomura Holdings's wholesale banking unit chief Jesse Bhattal resigned as Japan's biggest brokerage failed to absorb costs linked to overseas operations acquired from Lehman Brothers Holdings.
Bhattal, who was also deputy president, chose to quit and will retire from the banking industry, Keiko Sugai, a Tokyo-based spokeswoman for Nomura, said by telephone on Tuesday. Chief operating officer Takumi Shibata will replace Bhattal temporarily. Bhattal, 55, joined Nomura from Lehman after the Japanese company bought the bankrupt Wall Street firm's European and Asian operations in 2008.
He leaves behind a division that is bearing the brunt of a $1.2 billion cost-reduction programme after overseas operations posted their biggest loss in at least six quarters and Moody's Investors Service said it was considering downgrading Nomura.