Although the official reason given is the desire “to pursue other opportunities,” it seems that the subprime mortgage market meltdown might be to blame for the departure of S&P president Kathleen Corbet.
Corbet was with S&P for three years before stepping down at the end of August. Her departure comes after credit rating agencies found themselves in the glare of the spotlight following market turmoil resulting from the subprime implosion. Senator Chris Dodd (D – Conn.), chairman of the U.S. Senate Banking Committee, has called for hearings on why agencies gave high ratings to securities that later plummeted.
Corbet has been replaced by Deven Sharma, formerly an executive vice president of Global Sales and Investment Services at S&P. He has been with S&P since 2002, and prior to that was a partner at consulting firm Booz Allen Hamilton.