NEW YORK Oct 31 Veteran bank analyst David
Hendler, known for his criticism of companies he covers, has
left CreditSights Inc, an independent bond research firm, and
plans to work as a consultant on banking issues next year, he
said in an interview on Thursday.
Neither Hendler, 52, nor a CreditSights executive would say
why he left. An analyst for three decades, he led CreditSights'
coverage of U.S. financial services companies, including
JPMorgan Chase & Co, Bank of America Corp and
Goldman Sachs Group Inc.
Pri de Silva, who worked with Hendler, is now senior U.S.
bank and brokerage analyst, CreditSights President Peter Petas
said in an email to Reuters.
Hendler joined CreditSights in May 2001 as its twelfth
employee. He was among the first analysts to warn of increasing
risk banks were taking with mortgage securities as home lending
surged with the housing bubble.
His willingness to criticize the companies he covered stood
in contrast to analysts who worked for major investment banks,
who came under fire in the early part of last decade for not
being independent enough of corporate clients.
CreditSights has more than 120 employees and publishes some
300 research reports each month. Globally, 19 analysts work on
financial services, making one of the largest teams on Wall
Hendler said that as a consultant he will continue to
analyze evidence of interest rate risk, which he sees as a major
threat to bank profits and capital strength. The damage to an
institution from sudden changes in interest rates would add to
pressure from Washington on big banks to divide themselves into
smaller companies, which would impact bank bondholders, he said.
Petas said that, unrelated to Hendler's departure, the firm
is interviewing experts with experience in regulation and risk
management because of the increasing importance of new
government rules on financial institutions.