Where have all the top bankers gone?

Head of Asia Investment Banking of HSBC Holdings Plc, Steven Wallace has quit HSBC. HSBC spokeswoman Annie Cheng said Chang Touchen, Head of Investment Banking in South East Asia will replace Wallace.

This is the second senior departure in HSBC in the past month. Hong Kong based Wallace, who was promoted to head of Asia Investment Banking in 2005 refused to comment.

His resignation follows that of Michael Smith, who quit as head of HSBC’s Asia operations last month to join Australia and New Zeland Group Banking Limited as Chief Executive Officer.

HSBC ranks 18^th on advise relating to mergers and acquisitions in Asia this year, down from 5^th in 2006.

The decline is evident in HSBC’s Investment Bank too. Pretax profit at HSBC’s investment bank fell 7% in last year’s second half even as competitors including Goldman Sachs Group Inc. reported record earnings.

Former Co- Head of Investment Banking John Studzinski said the inclusion of 1400 new employees and increased expenses contributed to the decline in the overall earnings