Departure of Calyon CEO is "feasible" -source

PARIS, May 12 (Reuters) - The departure of Calyon Chief Executive Marc Litzler is a "feasible" option, a banking industry source close to the company said on Monday, in response to press reports that Litzler might leave.

"It's realistic. It's something that is feasible," said the source, who declined to be named.

French newspaper Le Monde reported over the weekend that Calyon might sack Litzler after the bank had to write down 3.3 billion euros ($5.1 billion) in assets due to the credit crunch which has hit banks across the world.

Calyon declined to comment and there was no immediate reply to an e-mail sent to Litzler's work address.

Calyon is the investment banking unit of Credit Agricole (CAGR.PA: Quote, Profile, Research), France's biggest retail bank which reports first-quarter results on Thursday.

Le Monde said Litzler, who formally took up his position as CEO of Calyon in October, could be ousted during a May 15 board meeting.

The newspaper said he could be replaced by Patrick Valroff, head of Sofinco, a Credit Agricole subsidiary that specialises in consumer credit.

A spokesman for Sofinco also declined to comment.

The source close to Calyon said it was likely the regional retail banks which control Agricole would have been displeased with Litzler's performance.