The most senior capital markets executive to be hired by former investment banking chief John Studzinski has quit HSBC as it continues to move away from previous efforts to build a full service investment bank.

Danny Palmer, who joined HSBC on a reported $15m (€11m) three-year contract in September 2004, was hired by Studzinski to head the bank's equity capital markets business. In February last year Palmer's role was expanded to cover debt and equity capital markets.