The board of ANZ is yet to determine who it will hire as chief executive to replace John McFarlane but one candidate, whose chances were clearly on the wane, is now officially out of the running.Steve Targett, head of institutional banking, has quit ANZ. The bank announced his departure yesterday.Targett joined ANZ from Lloyds TSB in early 2004 amid some expectation that he was a strong candidate to become CEO. Targett had worked for NAB prior to working for Lloyds in London.Peter Hodgson will replace Targett as group managing director of ANZ Institutional Bank. Hodgson was previously the chief risk officer and joined ANZ around the same time as McFarlane.David Stephen, currently head of risk in the institutional division will replace Hodgson, initially in an acting capacity. When announcing the bank's interim profit in late April John McFarlane emphasised his disappointment with the performance of the institutional banking group, which reported a modest four per cent increase in profit for the six months for the half year to March 2007.Of the six business groups in institutional banking, only two managed to achieve the seven to 10 per cent revenue growth target. The rest were the bank's bottom feeders.