Barclays CEO Reshapes Trading Unit at Heart of Growth Plans
Barclays CEO Reshapes Trading Unit at Heart of Growth Plans
(Bloomberg) --
Barclays Plc Chief Executive Officer Jes Staley is pushing ahead with changes at the firm’s closely scrutinized investment bank, a key part of his strategy to drive growth.
The British lender slashed about a hundred jobs globally at its securities unit this week, focusing on highly paid senior trading roles. The cull also included several senior members of an equities business that profits by exploiting gaps in tax laws.
The American-born CEO, who took direct control of the division last spring after ousting Tim Throsby, wants costs under control as he competes with Wall Street rivals. Staley has linked his reputation to the success of the investment bank, which was criticized as inefficient by the activist investor Edward Bramson last year.
Staley has also been building his team with selective appointments and turned again to his old employer, JPMorgan & Chase & Co., for his latest hire. Paul Leech will join Barclays to lead its European equities business after more than two decades at the U.S. lender. He will report to Fater Belbachir, the bank’s global head of equities and a fellow JPMorgan veteran recruited by Staley last year.
Barclays declined to comment.
Over the past week, the bank started trimming mostly managing director and director positions in London and Asian financial hubs, according to people familiar with the matter.
Sadat Mannan, head of the Delta-1 Strategic business in London, has left the bank after about two decades along with Renaud Isman and Premkumar Vadiveloo, people familiar with the matter said. Trading desks that target dividend tax laws have found it harder to turn a profit as governments close off the loopholes that enable them.
The bank is due to report its fourth-quarter results in February, and the bar to outperform its U.S. rivals is high. JPMorgan just posted the best year for any U.S. bank in history, fueled by a rebound in trading, especially in fixed income.
Staley hasn’t shied away from wielding the knife at Barclays since Bramson began pressuring the firm. Last year, Staley said Barclays cut 3,000 jobs in the second quarter.
To contact the reporter on this story: Stefania Spezzati in London at sspezzati@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Keith Campbell
©2020 Bloomberg L.P.