Barclays Plc, UK's third largest bank, is expected to announce Jes Staley, former JPMorgan Chase banker, as its new Chief Executive Officer (CEO). Staley is believed to have accepted the offer from Barclays, according to the unconfirmed market news. The appointment is expected to be announced within two weeks. Even after the confirmation of the offer, Staley will have to get approval from Britain's financial regulator. Barclay's investment banking activity has been under pressure for some time. Choosing Staley could result in renewed focus on the investment banking.
Staley is currently managing partner of BlueMountain Capital Management, a US-based hedge fund firm. Staley is leading the race among the others who have been shortlisted for CEO position at Barclays. The appointment process for CEO at Barclays was first reported by FT.
Staley was also on the shortlist for CEO at Barclays in 2012 also. Staley left JPMorgan in early 2013 after serving the bank for 34 years. He joined Blue Mountain Capital and is continuing till date. Staley managed JPMorgan's investment bank and asset management business.
Barclays' investment banking activity has been declining for the past three years. Barclays is focusing on investment banking to improve profitability while trimming costs. Barclays seems to be opting for investment banking activity with more priority.
Staley figured in as a potential candidate for CEO at Barclays and in both the occasions as an investment banker. This makes the choice of Barclays very clear that risk-reward trade-off in adverse conditions. Low-risk business is not successful after six years of global financial crisis.
John Mc Farlane, Chairman of Barclays, has been running the show in the interim since Jenkin's exit. Farlane has been exploring several options considering potential candidates internally and externally. Recently, Standard Chartered Bank has appointed Bill Winters as its new CEO.
If Staley is appointed as CEO at Barclays, then it will be a second former JPMorgan bankerrunning a UK-based bank. The present finance director at Barclays is Tushar Morzaria and he is also former JPMorgan banker.
Antony Jenkins, the previous CEO, was fired by the bank in July as he lost support from non-executive directors. Jenkins' style of functioning created a rift with the board in measures aimed at making the bank turn around. Jenkins said that bank was forced to cut the priority to investment bank after a series of frauds. Adding to this, the changes in regulation were also impacting trading activity. Barclays Plc didn't make any announcement regarding CEO appointment so far. BlueMountain's spokesperson also declined to comment on the latest development.
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