Barclays COO's exit stokes talk of tension at top

By Steve Slater

LONDON (Reuters) - The surprise departure of one of Barclays' (BARC.L) most senior executives stoked speculation on Friday about simmering tension at the top of Britain's third biggest bank.

Paul Idzik, Barclays' chief operating officer since 2004, has quit and will leave later this year, the bank said late on Thursday.

The colourful Idzik, a 47-year-old American and former professional tennis player, was seen as a key intermediary between Chief Executive John Varley and the head of Barclays Capital, Bob Diamond.

Speculation has persisted about tension between the two since Varley became CEO four years ago and Diamond's units have driven growth and often overshadowed the group performance.

Reports said Idzik's departure was partly due to the tension. Insiders downplayed the talk, saying Idzik was leaving as he had largely completed his role. He will not be replaced.

The departure also comes at a sensitive time for Barclays, however, which is facing speculation that it could launch a rights issue to rebuild its capital and also scrutiny from investors over its exposure to losses from the credit crunch.

By 2:35 p.m. Barclays shares were up 3 percent at 479 pence, in line with strong gains made by other UK banks.

Analysts said the shares had held steady as Idzik's role was not linked to potential writedowns or other sensitive trading issues. One described him as "the enforcer" within the group.