HSBC has suffered another blow in its attempt to break into investment banking – the surprise resignation of its global head of capital markets. The circumstances are unclear, but the setback still underscores the difficulties that HSBC has encountered in building an investment bank from scratch.

Daniel Palmer’s departure robs HSBC of a well-respected banker. He was the link between HSBC’s existing corporate clients and the world’s institutional investors who might buy their debt or equity.