New Star founder and chairman John Duffield will leave the ailing fund manager, the FT reports.
Quoting sources close to the company, the paper says Duffield will depart whether or not New Star is sold on by its likely majority bank owners.
It says Duffield will lose an estimated £950,000 on his 7% stake in the company.
Weekend reports also suggested the five banks set to control the struggling asset manager will look to sell the firm as soon as possible.
Should no buyer be found - with Aberdeen and Neptune rumoured to be among bidders - the Times reports two banks involved, Lloyds and HBOS, could look to merge the company with its two fund houses - SWIP and Insight.
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