Veteran bank analyst Hendler leaves CreditSights

Reuters

NEW YORK, Oct 31 (Reuters) - Veteran bank analyst DavidHendler, known for his criticism of companies he covers, hasleft CreditSights Inc, an independent bond research firm, andplans to work as a consultant on banking issues next year, hesaid in an interview on Thursday.

Neither Hendler, 52, nor a CreditSights executive would saywhy he left. An analyst for three decades, he led CreditSights'coverage of U.S. financial services companies, includingJPMorgan Chase & Co, Bank of America Corp andGoldman Sachs Group Inc.

Pri de Silva, who worked with Hendler, is now senior U.S.bank and brokerage analyst, CreditSights President Peter Petassaid in an email to Reuters.

Hendler joined CreditSights in May 2001 as its twelfthemployee. He was among the first analysts to warn of increasingrisk banks were taking with mortgage securities as home lendingsurged with the housing bubble.

His willingness to criticize the companies he covered stoodin contrast to analysts who worked for major investment banks,who came under fire in the early part of last decade for notbeing independent enough of corporate clients.

CreditSights has more than 120 employees and publishes some300 research reports each month. Globally, 19 analysts work onfinancial services, making one of the largest teams on WallStreet.

Hendler said that as a consultant he will continue toanalyze evidence of interest rate risk, which he sees as a majorthreat to bank profits and capital strength. The damage to aninstitution from sudden changes in interest rates would add topressure from Washington on big banks to divide themselves intosmaller companies, which would impact bank bondholders, he said.

Petas said that, unrelated to Hendler's departure, the firmis interviewing experts with experience in regulation and riskmanagement because of the increasing importance of newgovernment rules on financial institutions.

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