The changes sweeping Bankers Trust Co.'s derivatives unit have claimed another casualty.
The resignation of Jim Dowd, the bank's senior risk management officer in Asia, earlier this week comes less than a month after his boss, William Mumma, resigned as head of the unit.
A Bankers Trust spokesman said a replacement will likely come from within the bank and will be named at a later date.
The resignation of Mr. Dowd, who had been on board since 1987, is the latest management change to hit the bank's derivatives unit following accusations of coercive tactics involving the sale of complex structured derivatives. Those accusations have led to a series of high-profile legal battles with corporate customers such as Procter & Gamble and Gibson Greetings.
In light of these legal problems and the resulting damage to Bankers Trust's reputation, the board of directors passed over the bank's president, Eugene Shanks, and chose former Deputy Secretary of the Treasury Frank Newman to succeed Charles Sanford as chairman and chief executive.
Mr. Shanks resigned a few days prior to the announcement, and other senior management resignations have followed. In addition to Mr. Mumma, Brian Walsh resigned in November as head of the bank's investment banking operations.
Some observers had predicted that Mr. Mumma's resignation could lead a number of middle managers in the derivatives operation to leave as well. Indeed, one source close to the bank said Mr. Dowd had close ties to Mr. Mumma.
A bank spokesman said Mr. Dowd, who could not be reached for comment, has indicated he is moving to Colorado and may leave the financial services industry.