Barclays Preparing to Name Jes Staley Its CEO -- 2nd Update
October 12 2015 - 7:10PM
Dow Jones News
By Max Colchester
Barclays PLC is preparing to name former J.P. Morgan Chase &
Co. executive Jes Staley as its next CEO, as the British bank once
again turns to an American investment banker for leadership.
The appointment, which is still subject to regulatory approval,
could be made in the coming weeks, a person familiar with the
matter said. The move would put a three-decade veteran of J.P.
Morgan in charge of a bank that has been looking for a CEO since it
ousted its former leader, Anthony Jenkins, in July amid concerns
about lackluster performance and slow progress on
restructuring.
Mr. Staley, who formerly ran J.P. Morgan's investment bank, is
currently managing partner at BlueMountain Capital Management
LLC.
If Mr. Staley gets the nod, it would be the second time in five
years that Barclays has turned to a U.S. investment banker to
revive its fortunes. It also marks the latest J.P. Morgan alumni to
find a top job at a British bank. Former J.P. Morgan executive Bill
Winters was named chief executive of Standard Chartered PLC earlier
this year.
Barclays' search -- which has been led by executive chairman
John Macfarlane -- came up with a short list of potential
candidates that included Morgan Stanley executive Colm Kelleher and
Barclays recently appointed chief operating officer, Jonathan
Moulds, according to people familiar with the matter.
The Financial Times earlier reported on Barclays' plans to name
Mr. Staley to the position.
Barclays fired Mr. Jenkins in July after he implemented a
strategy to make the lender less reliant on its investment banking
operations. Barclays has cut thousands of jobs at what was once the
bank's profit engine and trimmed a raft of product lines. The
investment bank, largely built up under former Barclays CEO Bob
Diamond, has been under siege from investors and regulators amid a
series of scandals and declining returns.
The 58-year-old Mr. Staley will face challenges as he looks to
reshape the investment bank into a position it can compete with
U.S. peers. At an earnings conference earlier this year, Mr.
Macfarlane said U.S. investment banks had become dominant and were
the only one who could now claim to be "truly global."
Although his first name is James, Mr. Staley known as "Jes" to
his colleagues and friends.
While well-versed in asset-management and investment banking,
Mr. Staley will be entering new territory with Barclays' big retail
presence. Like other banks, Barclays is navigating technological
changes as its customer base moves away from physical branches to
embrace mobile and online methods of banking.
Mr. Staley would also assume command at a time when Barclays and
other large European banks are shrinking their balance sheets,
retreating from some of the riskier investment-banking businesses,
and tempering ambitions to be global players. Their returns now
lagging their U.S. counterparts.
"Jes has had a long career in banking doing a lot more than the
securities business," said Roy Smith, a professor at New York
University and a former Goldman Sachs Group Inc. banker. "But
that's a tough part of the Barclays' business for it to get right.
Jes's experience at the top levels of J.P. Morgan can only
help."
Mr. Staley owns a stake in BlueMountain, which he acquired when
he joined the firm in 2013. It isn't clear whether he will be
forced to sell that stake as a result of his new job.
He also holds a board seat at Swiss banking giant UBS.
Justin Baer contributed to this article.
Write to Max Colchester at max.colchester@wsj.com
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(END) Dow Jones Newswires
October 12, 2015 18:55 ET (22:55 GMT)
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