In four short paragraphs, the federal Liberal party announced that its embattled national director, Jamie Carroll, is stepping down.

Carroll was also the deputy national campaign director, so his leave-taking is coming at a critical time for the party, with election talk in the wind.

But a few weeks ago he found himself in trouble with some high-ranking Quebec Liberals after it was reported that he had been urged to hire more francophones for Dion's staff and had apparently balked, asking: "Do we also have to hire people from the Chinese community to represent the Chinese community?"

The internal controversy escalated to the point where, as CBC News reported, Carroll sent a letter to the Liberal party accusing unnamed officials of besmirching his reputation.

He also threatened legal action and demanded a severance package, which may have been forthcoming. Today's release from party president, Senator Marie Poulin, thanks "Jamie for his service to the Liberal party" and notes that the mutual agreement "was dealt with as a confidential personal matter" and there would be no further comment from the Liberal party.

There was also no word on who the next national director will be.

Carroll had been hand picked by Liberal Leader Stéphane Dion, who had stood by him while the internal bickering picked up steam.

In fact, yesterday, at a press conference, Dion dodged questions about Carroll's role in the party though he almost certainly knew the end was coming.