* More than 10 bankers quit in last 6 months - sources
* HSBC ranking in global M&A advisory list slips to 42
* Bankers complain of lack of leadership, strategy - sources
* Spokesman says new hires globally outweigh EU departures
By Pamela Barbaglia
LONDON, May 31 (Reuters) - At least 10 high-profiledealmakers in Europe have left HSBC in recent months ata time of record merger activity, after the bank failed tooverhaul its investment banking unit and revamp client teams,four sources said.
Overall dozens of investment bankers have quit, includingsenior managers at the bank's top performing European privateequity team, the sources familiar with the matter told Reuters.
The departures reflect a growing sense of frustration overwhat the sources said was a lack of clear investment bankingstrategy at Europe's biggest bank and its failure to rebuild acompetitive team on the continent.
They also highlight the difficulties European banks face incatching up with Wall Street rivals, whose dominance ininvestment banking league tables has increased.
A spokesman for HSBC said the bank hired dozens of seniorbankers recently, significantly outweighing the number ofdepartures. The majority of the hires are based in North Americaand Asia, according to a list provided by the bank.
"We continue to see good momentum across our financing andadvisory franchise, taking leading roles in recent high-profiletransactions," the spokesman said.
Chief Executive John Flint said in April that he wanted todouble down on HSBC's "pivot" to Asia and China in particular.On Feb. 27, the bank announced two hires in North America tostrengthen its investment banking there.
Flint will unveil his strategy on June 11 and is expected toannounce further investment in China.
While there is no hiring spree, the bank is seeking to scaleup its presence outside Europe.
Some staff told Reuters they left because they felt theEuropean business was rudderless.
One of HSBC's most senior dealmakers in Germany, NorbertReis, will leave in June, according to the sources. Hepreviously served as head of global banking in Germany.
HSBC's consumer and retail director Patrick Philion andEuropean private equity co-head Umberto Giacometti both quit inMay to join Nomura, the sources added.
The departures follow the abrupt exit in November of HSBC'stop investment banker, Matthew Westerman, a Goldman Sachsveteran hired with a mandate to shake up the investment bankingunit in Europe and revive growth.
"BARE BONES"
Like most global banks, HSBC had been shrinking itsinvestment banking business following the financial crisis. In2015 it slashed nearly 50,000 jobs and cut its investment bankby a third to restore growth across its sprawling empire.
Westerman's appointment in 2016 was aimed at regainingmarket share and competing with U.S. rivals. Instead, he leftafter 18 months, having cut 100 jobs, and has not been replaced.
"Westerman did the clean-up job but had no time to rebuildand reorganise the unit," said one banker who left recently."Most teams have been reduced to the bare bones."
Other bankers also said HSBC had lost direction sinceWesterman's departure and questioned the depth of its commitmentto growing its investment banking franchise.
The turnover appears to have taken its toll, with HSBCdropping to 42nd this year in the global M&A advisory rankingfrom 15th a year ago, according to Thomson Reuters data.
M&A advisory has never been a strong area for HSBC, which ismostly known for its debt capital markets and lending activity.But over the past five years its M&A ranking ranged between 17thand 24th.
DEFECTIONS
The bank's private equity and leveraged finance teams havebeen hit hard by recent defections.
HSBC global private equity head Alexis Maskell left in Marchto join Citi while Bala Ramesh, a director in leveraged creditsyndicate, quit in October to join Jefferies.
Maskell's right-hand man Giacometti left in mid-May after 11years at the bank while Tim Kerry, a managing directorspecialising in leveraged finance, resigned to join Barclays.
Omar Faruqui, previously co-head of European private equity,also joined Barclays in January.
Dan Cohen, the head of HSBC's high-yield trading, left thebank in April to join Nomura while Stephen Smith joined Barclayslast year as a director in the high-yield syndicate team.
Senior managing director Luca Pietrantoni was among the mostrecent departures.
A number of more junior bankers also moved on in recentweeks, including two associates in the financial sponsors team-- Gerald Aichberger and Carol Rusin -- and analyst EmielKhakhar.
Some industry sectors as well as regional teams in Europehave been left unstaffed, the sources said.
HSBC recently advised JAB Holdings on its 1.5 billion poundpurchase of UK food chain Pret A Manger and worked with Duluxpaint maker Akzo Nobel on its 10.1 billion euro sale of itsspecialty chemicals unit in March.
But the bank missed out on major roles in some of thebiggest deals this year, including Japanese firm Takeda's 45.3billion pound purchase of London-listed drugmaker Shire.
In a bid to win more M&A work, HSBC is in the process ofhiring former Morgan Stanley banker Kamal Jabre, who used to runthe Middle East and North African region, as its global head ofadvisory, a source close to the bank said.
HSBC declined to comment on the appointment. It recentlynamed one of its senior bankers, Borja Azpilicueta, as globalhead of financial sponsors, sovereign wealth funds andinstitutional private clients.
(Additional reporting by Lawrence White; Editing by MikeCollett-White)
