The abrupt exit of Jasjit Bhattal, the highest-ranking ex-Lehman executive at Nomura Holdings, marks a crucial juncture for Japan's top brokerage as it decides whether to replace him with an experienced global banker to foster expansion, or with an in-house local to focus on the home market.
The loss of Bhattal, and global markets head Tarun Jotwani, another Lehman alumnus, sets the scene for a succession battle at Nomura , which had hoped its acquisition of Lehman Brothers' European and Asian operations after the storied Wall Street firm collapsed in 2008 would finally bring it global presence.
Bhattal's chosen successor, assuming his role is replaced in its current form, will be seen by many in the industry as a sign of where Nomura sees its future.
If the struggling financial house opts for a candidate with foreign experience and a track record of managing a successful investment banking unit, those global ambitions could remain alive. Picking a Japanese manager with little overseas expertise may signal those aspirations have cooled amid weak results and worsening global conditions for the investment banking industry.
Sources inside Nomura predict any direct replacement for Bhattal would be seen internally as a strong candidate eventually to replace CEO Kenichi Watanabe.
Takumi Shibata, the architect of the Lehman acquisition and Nomura's chief operating officer, has taken over Bhattal's duties while the search for a replacement is on, and some inside the firm say that could become a permanent arrangement.
Others say that stretching Shibata thin is not the solution, and replacing Bhattal swiftly is key to properly managing the non-Japan side of the bank.
